
Equity compensation: a complete guide for startups
How do startups structure equity compensation? This guide covers everything from vehicle types, vesting, tax, grant values, and how to decide what's right for your company.

Equity is one of the hardest parts of an executive package to benchmark, because a single equity grant number rarely means the same thing twice.
A stock option grant at one seed-stage company can represent completely different risk, tax treatment, and realistic upside to one at another. And once you reach later stages, the structure is completely different.
Together with Erevena, we surveyed over 1,000 executives across European tech to understand how equity actually gets structured – which vehicles are used, how vesting works, and how both shift as a company matures.
Here's what the data shows.
Overall, 75% of executives receive equity as part of their compensation package (Ravio Executive Salary Survey 2026).
Stock options are the most common vehicle overall, at 44% combined (split between 28% tax-advantaged and 16% non-tax-advantaged schemes), followed by RSUs at 31%.
11% of executive equity grants are phantom shares, 8% growth shares, 2% ordinary shares, 1% Management Incentive Plans, and 1% co-investment.

However, the vehicle shifts considerably by stage:
If we bring ownership type into the picture alongside stage, PE-backed companies stand apart from the general pattern entirely, with 26% growth / hurdle shares, and co-investment at 6% – both tying executive upside explicitly to returns above a threshold, reflecting the PE value-creation model rather than simple share price appreciation.
Overall | Early-stage (seed to series B) | Late-stage (series C+) | Private equity backed | |
|---|---|---|---|---|
Restricted Stock Units (RSUs) | 31% | 3% | 24% | 14% |
Stock options: tax advantaged scheme | 28% | 41% | 17% | 23% |
Stock options: non-tax advantaged scheme | 16% | 34% | 43% | 10% |
Phantom / virtual shares | 11% | 14% | 7% | 16% |
Growth / hurdle shares | 8% | 4% | 6% | 26% |
Management Incentive Plans (MIPs) | 1% | <1% | 0% | 1% |
Co-investment | 1% | <1% | 0% | 6% |
Ordinary shares | 2% | 3% | 2% | 2% |
Other | 1% | 1% | 1% | 1% |
Time-based vesting dominates executive equity vesting.
Four-year vesting is the most common schedule overall, at 64%, followed by three-year vesting at 16% (European Executive Salary Survey 2026).
Vesting schedule | Proportion of executives |
|---|---|
Time-based over 4 years | 64% |
Time-based over 3 years | 16% |
Time-based – other | 10% |
Mix of time-based and KPI-based | 4% |
Exit only | 5% |
KPI-based – achievement of company KPIs | 2% |
KPI-based – achievement of individual KPIs | 0.1% |
In terms of vesting cadence, monthly vesting is the most common cadence (64%), though a meaningful share vest quarterly (15%) or annually (17%).
Quarterly and annual cadences are more prevalent for C-suite, reflecting the longer-term orientation of executive equity, where the focus is on sustained value creation rather than regular liquidity.
Vesting schedule | Proportion of executives |
|---|---|
Monthly | 64% |
Quarterly | 15% |
Annually | 17% |
Bi-annually | 4% |
Equity design gets more layered once a company lists.
At private companies, equity is typically a single vehicle applied broadly.
At listed companies, different vehicles serve different levels:
For the full detail on peer group construction, pay mix shifts, and remuneration committee (RemCo) governance at listed companies, see our guide to executive compensation at public companies with Rob Green and Figen Zaim.
"PSUs have become popular for executives globally – there's much more focus on performance now than ever before.”

Rob Green
Founder of Darwin Total Rewards
The data in this article gives you a view of the market norms for executive equity.
But, it only just scratches the surface in terms of what executive equity packages really look like.
Equity is often individually negotiated by senior hires – refresh grants, buy-outs of forfeited equity from a previous employer, and communication all shape whether a grant actually lands as intended, not just the vehicle and schedule on paper.
Rob Green, Founder of Darwin Total Rewards, flags the risk that often gets missed until it's too late: "You can make someone's day or ruin their day by giving them the same amount of equity. Context and communication make all the difference."
And for Figen Zaim, Founder of Olivier Reward Consulting, the key to getting executive equity right is that it needs to feel meaningful: "I've worked with startup clients that don't believe in bonuses. They don't want to spend the cash, or they don't see how performance can be objectively measured, so they'd rather just add more equity onto the executive package. It makes equity sound like monopoly money, like it isn't really important to the company – when actually having equity should feel like an exclusive club."
Executive equity compensation is the portion of a senior leader's pay delivered as company ownership – typically stock options, RSUs, or growth shares – rather than cash. According to Ravio and Erevena's 2026 survey, 75% of executives receive equity as part of their package, with the specific vehicle varying considerably by company stage.
According to Ravio and Erevena's 2026 survey, stock options are the most common vehicle overall, at 44% combined (28% tax-advantaged, 16% non-tax-advantaged), followed by RSUs at 31%. But the picture shifts sharply by stage – early-stage companies favour tax-advantaged options (41%), while late-stage companies lean toward non-tax-advantaged options (43%) and RSUs (24%).
According to Ravio and Erevena's 2026 survey, four-year, time-based vesting is the standard, used by 64% of executives, with three-year vesting the next most common at 16%. Monthly vesting is the most common cadence overall (64%), though quarterly and annual vesting are more common at C-suite level, reflecting a longer-term focus over regular liquidity.
At private companies, equity is typically a single vehicle – most often stock options – applied consistently across the executive team. At listed companies, equity becomes more layered: performance share units (PSUs) dominate at the most senior levels, tied to specific performance conditions like total shareholder return, while RSUs become more common further down the organisation.
Ravio's 2026 European Executive Salary Survey, produced with Erevena, provides data on equity vehicle prevalence, vesting schedules, and vesting cadence across CEO, Sales, Marketing, Engineering, and Finance leadership roles, cut by company stage and ownership type. For grant value insights, Ravio's compensation benchmarking platform also provides executive equity benchmarking data.
Your monthly dose of market insights and expert perspectives

How do startups structure equity compensation? This guide covers everything from vehicle types, vesting, tax, grant values, and how to decide what's right for your company.

Join Merten Wulfert (co-CEO, Ravio), Armon Bättig (CEO, Ledgy) and Figen Zaim (Founder and Managing Consultant, Olivier Reward Consulting) for an honest conversation about what a well-designed employee equity plan actually looks like – sharing data from Ravio and Ledgy and real experiences on what works.

Handpicked Berlin and Ravio are unpacking five findings from the 2026 Berlin Tech Salary Survey – with European benchmark data added in real time.