Funding and ownership
Equity
A share of ownership in the company, usually given as shares or share options as part of your pay.
A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.
You'll hear it as
The salary's lower, but there's equity.
Why it matters to you.
Equity is only worth something if the company sells or lists, and you're still holding it. Treat it as a lottery ticket with better odds, not as salary.
Videos.
Mentioned in 4 videos, plus more on Careers & hiring.