http://paulgraham.com/equity.html http://paulgraham.com/equity.html What PG writes here is a pretty good explanation of how equity should work and he even give

http://paulgraham.com/equity.html http://paulgraham.com/equity.html What PG writes here is a pretty good explanation of how equity should work and he even gives an example of a situation where a hypothetical startup wants to hire a good hacker and trade equity for him.