Fred Wilson wrote a nine part blog series on employee equity which you should read: http://mba-mondays.pandamian.com/employee-equity/ http://mba-mondays.pandam

Fred Wilson wrote a nine part blog series on employee equity which you should read: http://mba-mondays.pandamian.com/employee-equity/ http://mba-mondays.pandamian.com/employee-equity/ From the startup view point rather than employee viewpoint, but it should give you most of the stuff you want to know. One additional point you should consider is what the tax implications of the equity will be.