The Open Guide to Equity Compensation

The Open Guide to Equity Compensation is a plain-English handbook that explains how startup equity works for employees and founders. It walks through stock options, RSUs, vesting, cliffs, refresh grants, and exercise mechanics so readers understand both terminology and outcomes. Tax topics are covered at a practical level—AMT, 83(b), and how different equity types interact with taxes over time—so people can ask better questions of professionals. The guide emphasizes negotiating and evaluating offers, including dilution, liquidation preferences, and how to compare cash versus equity across companies and stages. It aims to reduce anxiety and confusion by presenting examples, rules of thumb, and trade-offs without legalese. While not a substitute for professional advice, it equips readers with a mental model to navigate compensation, retention, and exit scenarios more confidently.