Is 0.25% equity good for an Engineering Manager at Seed stage?

0.25% ownership is within normal range for a Manager/Director-level hire at Seed stage. Early-stage manager grants are typically 0.15%–0.5%. The higher equity reflects both the management responsibility and the early-stage risk.

What is a good salary for Engineering Manager at Seed startup?

Engineering Manager base salary at Seed startups typically ranges from $150K to $185K. $170K is reasonable. The trade-off is accepting lower cash for significantly higher equity upside compared to later-stage companies.

How much is 25,000 startup shares worth at Seed stage?

Your equity value = (Exit Share Price - Strike Price) × Shares. If the company exits at $7/share in 5 years and your strike is $0.75, your 25,000 shares are worth $156,250 before taxes. That's ~0.9× your annual salary — solid upside for early-stage risk.

Real Offer Example

Engineering Manager at Seed-Stage Startup

Actual offer breakdown: $170,000 base salary plus 25,000 stock options (0.25% ownership). See total compensation and potential equity value.

📋 Offer Details

Role Engineering Manager

Company Stage Seed

Base Salary $170,000/year

Equity Grant 25,000 options

Strike Price $0.75/share

Current 409A $2.00/share

Ownership % ~0.25%

Location Austin, TX

📊 Total Compensation Analysis

Equity-to-Salary Ratio at Reasonable Exit
0.9×

                    At a $7/share exit in 5 years, your equity is worth $156,250 before taxes.
                

Fair Market Typical for Seed-stage Manager

Breakdown:

Annual base salary: $170,000 (fair for Seed Manager in Austin)
Current option spread: $31,250 (25,000 × ($2 - $0.75)) — paper value today
5-year exit value (30% growth/year, 25% dilution): ~$156,250 before taxes
Total 5-year compensation: $1,006,250 ($850K salary + $156.25K equity)

🎯 Exit Scenario Projections

Exit Outcome	Share Price	Equity Value	Total 5-Year Comp
Modest exit	$4/share	$81,250	$931,250
Reasonable exit	$7/share	$156,250	$1,006,250
Strong exit	$14/share	$331,250	$1,181,250

*Assumes 30% annual growth in 409A, 25% dilution from future rounds, 5-year horizon.

🔍 Market Context & Negotiation Tips

How this compares:

Salary ($170K) is fair for Engineering Manager at Seed stage
0.25% equity is within range for Manager at Seed (0.15%–0.5%)
The equity-to-salary ratio of 0.9× reflects balanced compensation
Seed stage = 20–40% dilution risk per round — your 0.25% could shrink significantly

If you get this offer, consider negotiating:

Ask for more equity: "Given the management scope and the early-stage risk, could we bring the grant to ~30,000 shares (0.3%)? That would align better with manager benchmarks at Seed."
Request a refresh grant: "I'd like a one-year refresh grant to maintain my ownership through future dilution."
Discuss reporting and scope: "Can we clarify the scope — will I be building the team from scratch, and what's the expected headcount by year one?"

Engineering Manager at Seed-Stage Startup

📋 Offer Details

📊 Total Compensation Analysis

🎯 Exit Scenario Projections

🔍 Market Context & Negotiation Tips

Analyze Your Own Offer