Would you prefer a higher base salary or a package of Salary + Stocks?
Would you prefer a higher base salary or a balance of cash + stocks?
What matters more to you – short-term rewards or potential lucrative, long-term payoffs?
Working with a lot of start-up & scale-ups, we often see them falling short in terms of salary budget vs. some of the bigger, more established companies in the market.
Whilst they can’t offer huge salaries to compete for the top talent, in some cases they can offer something slightly different in the form of Stocks / Equity.
Some candidates hold this in high regard as a lucrative benefit – feeling a greater sense of ownership in the work they do and recognising the potential future payoff should a company meet their ambitious plans for success.
Whilst others feel it’s an immaterial gesture and show scepticism toward shares – preferring a more guaranteed reward in the form of bonuses or additional salary.
W can see the arguments from both sides;
If you identify strong potential in a smaller companies’ future and business model – why not take the leap and make a short-term salary sacrifice for a potential long-term reward?
But if you prefer more security and clarity around your earnings or want quicker gratification for your hard work, maybe more cash-based incentives is the way to go.
What does our community think – are stocks / equity packages worth the risk? & How do you personally calculate the trade-off?
Keen to understand what everyone thinks!