What’s the best way to do compensate employees with equity?

It’s very difficult to put precise numbers on this because the specifics of every situation matter so much. I’ve seen some startups offer 5 or 6 year vesting schedules.  To compensate for this, they offer above-market grants. Another structure I’ve seen is back-weighted vesting.  For example, 10% of the grant vests after the first year, and then 20%, 30%, 40% in the following years.

Sam Altman in Employee Equity
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What’s the best way to do compensate employees with equity?

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