Stock options can be a lot different than equity depending on how it's structured. The options I was given was a cash payout of market stock price minus exercis

Stock options can be a lot different than equity depending on how it's structured. The options I was given was a cash payout of market stock price minus exercise price. More like a cash bonus. If I ran a small bootstrapped company, I'd say no to giving out stock options because where am I going to get a reliable stock price? I'd educate the sales person that cash bonus structure is a more appropriate at this stage of the company and a bonus is similar to a cash payout of a stock option anyway. It is more aligned to his role in the company. For equity (or structures resulting in equity), that's like taking on a partner. Voting rights, privileged info access, profit sharing. That is a very different dynamic. Since you're just calling him a "sales guy", doesn't sound like a partner to me. Again, cash bonuses are more aligned to his role. Also, you could revisit his role in the future. Use partnership as a carrot as long as he proves to be indispensable to the company over time.