Which Option Is Better: Equity Vs Salary?
In today’s candidate-driven market, candidates must choose between a higher annual salary, or the chance of securing equity. According to Hired’s 2021 State of Tech…
In today’s candidate-driven market, candidates must choose between a higher annual salary, or the chance of securing equity. According to Hired’s 2021 State of Tech Salaries report, 76% of candidates are prepared to accept a lower base wage in exchange for equity options. This is an appealing prospect for businesses because it allows them to save money on employee salaries in the short term while simultaneously encouraging employees to help the company prosper in the long run.
Equity remuneration includes things like options, restricted stock, and performance shares, which are all investment tools that demonstrate employees’ active participation in the company. Employees can share in the company’s profits through appreciation, which can aid in employee retention, especially if vesting limits apply. A below-market salary can sometimes be supplemented by stock compensation.
Highly qualified candidates are in high demand, and in order to attract them, it is necessary to prioritise their preferences. The big question is, what is the better option? A higher salary or equity as part of a compensation package. This infographic was designed to emphasise the primary benefits of both equity and a higher salary.