Salary vs Equity: Which Should You Negotiate First?
A clear strategy for deciding whether to push for more cash, more equity, or both—without leaving money on the table.
When you receive a job offer that includes both salary and equity, it can feel like a zero-sum game: more of one means less of the other. In reality, the best negotiators know how to weigh both strategically rather than treating them as competing priorities.
The Core Trade-Off Salary is immediate, reliable, and easy to value. Equity is uncertain but potentially transformational. A higher salary improves short-term security and borrowing power. Equity, on the other hand, builds long-term wealth if the company performs. The key is understanding what stage the company is in and what you value most right now. Early-stage startups offer equity-heavy packages to offset risk. Later-stage or public companies may offer equity for alignment rather than reward. When to Prioritize Salary If you have limited savings, existing debt, or major upcoming expenses, prioritizing salary is prudent. Liquidity matters. You cannot pay your mortgage with unvested shares. When to Prioritize Equity If you can afford risk and believe in the company’s trajectory, equity can provide life-changing returns. This is especially true when you join before a major valuation inflection point, such as a funding round or pre-IPO period. The Negotiation Sequence Always negotiate salary first to establish a stable floor, then pivot to equity. Anchoring salary early prevents the company from offsetting one against the other. Once salary is set, you can discuss upside, refresh grants, and vesting flexibility. Salary secures your today. Equity builds your tomorrow. Negotiating in the right order and with the right context ensures you get both.