Options and equity are financial instruments. Like mortgage, but with different rules. With a mortgage, you're buying a present house with your future income.

Options and equity are financial instruments. Like mortgage, but with different rules. With a mortgage, you're buying a present house with your future income. Presumably because you cannot afford to pay for it in cash right now. With options, the startup is compensating you for your present work with a future share of ownership of the company you're helping to build. Presumably because it cannot afford the risk of accepting the fixed expense of your salary right now. It's hard to tell whether the author is right that the current compensation structure needs to change. The real question is: are there potential employees around the labour market who accept the risk and prefer the potentially large future bounty over fixed income at present?