RESEARCH ANSWER
Making value and risk understandable matters as much as granting equity.
Questions
How do companies grant employee equity?
How is the salary-equity balance designed?
How are stock options explained to employees?
CROSS-COMPANY SYNTHESIS
Evidence-linked practices
Explaining the salary–equity choice
Employees see scenarios for what options could mean at different company outcomes.
Buffer Open EquityRole-based equity framework
Equity is handled as a compensation component within role, level and market frameworks.
GitLab Compensation HandbookBalancing salary and stock options
Total reward makes the trade-off between cash compensation and long-term company value visible.
Netflix Culture & CompensationEmployee tender offer instead of a primary raise
In August 2026 Linear ran a $99M tender offer at a $2.5B valuation, letting current and former teammates sell part of their vested equity. The previous tender ran alongside the 2025 Series C. Being cash-flow positive, the company raised no new primary round.
Linear — Sharing Linear’s growth with the people building itExecutive PSU vesting tied to relative TSR
Okta’s executive PSUs vest 0-200% of target based purely on relative total shareholder return against the Nasdaq Composite across stacked 1/2/3-year performance periods. The FY2026 proxy discloses actual results: three tranches vested at 100%, 100% and 161% of target respectively. Non-employee directors receive a $530,000 initial RSU plus a $245,000 annual RSU; say-on-pay passed with 94.6% support.
Okta FY2026 Proxy Statement (DEF 14A)