I think it makes a lot more sense to give lower-level employees yearly performance bonuses than illiquid equity. Lower-level employees generally don't have suff

I think it makes a lot more sense to give lower-level employees yearly performance bonuses than illiquid equity. Lower-level employees generally don't have sufficient information or perspective about the company's performance or long-term outlook to make an informed decision about exercising illiquid options. As a result, most low-level employees value illiquid equity at 0 these days. On the other hand, their individual, short-term performance can be evaluated according to objective standards much more easily than a similar evaluation can be made for management. Asking an employee being promoted to management to give up the possibility of future performance bonuses in return for equity is also an effective way of making sure management is aligned with the long-term success of the company.