Total Compensation: Equity > Base Salary

Total Compensation: Equity > Base Salary

In the world of tech jobs, it’s common—and often expected—that companies offer their employees at least some part of their compensation package in the form of stock options. 

2020 was a record year for initial public offerings (IPOs), with 480 companies going public on U.S. stock exchanges. 2021 is on track to be another massive year for IPOs.

On Blind, the largest anonymous professional network, we asked:

  1. If you were to join a pre-IPO company, what matters more to you in terms of total compensation:
  2. Would you be willing to take a reduction in base salary to increase your equity in your total compensation?

Here is what 3,225 professionals responded:

  • 60% of professionals say that if they were to join a pre-IPO company, equity would matter more than base salary.
    • 40% of Qualtrics ( whose IPO date was: Jan. 28, 2021) professionals say base salary matters more to them in terms of total compensation
    • 88% of Stripe (scheduled to IPO this year) professionals say equity matters more to them in terms of total compensation
    • 78% of Roblox (scheduled to IPO this year) professionals say equity matters more to them in terms of total compensation
    • 67% of Instacart (scheduled to IPO this year) professionals say equity matters more to them in terms of total compensation
  • 58% of professionals say that they would be willing to take a reduction in base salary to increase their equity
    • 71% of Qualtrics ( whose IPO date was: Jan. 28, 2021) professionals say they would be willing to take a reduction in base salary to increase their equity
    • 100% of Stripe (scheduled to IPO this year) professionals say that they would be willing to take a reduction in base salary to increase their equity
      • As do 100% of Roblox employees 

See the data overview here.

Having options when it comes to compensation packages is never a bad thing, but it can be confusing to choose between them. However, equity seems to be taking a strong lead in terms of total compensation packages.