How should a startup balance salary and equity for early engineers?

Early engineers take on more risk and ambiguity than people joining later, so it is fair to compensate them with a mix of competitive salary and meaningful equity. Decide whether you want to pay near market salaries with moderate equity or slightly lower salaries with larger equity grants, and be transparent about that philosophy. Explain the vesting schedule, potential dilution, and realistic exit scenarios rather than just waving at big numbers. Align equity size with impact and responsibility, not job titles alone. Clear, honest conversations about compensation build trust and reduce future friction.