Refery runs founding engineer searches for VC-backed Seed to Series B companies, and this guide is written from what those searches show. It does not promise any outcome, and the compensation examples it links to are dated public postings, not benchmarks.
First, find out what "founding" means here
The title is used for two different jobs. In one, you own the first product milestone, the architecture that follows, and the early engineering hires. In the other, you are a senior engineer with a founding title and a tightly scoped implementation task. Both can be good offers. They should not be paid the same way, because the equity is compensating you for different risks.
Ask the founders three questions and write the answers down:
- Which decisions are mine, and which stay with the founders?
- What is the first milestone, and what does the company look like if it ships?
- Who else is on the engineering team, and who will I hire?
The hiring-manager version of this test is in how to hire a founding engineer. If the company cannot answer these clearly, that is information about the role, not about you.
Read base and equity as two separate offers
Do not evaluate "total compensation." Evaluate the cash offer on its own, then the equity offer on its own, then decide whether the trade between them is one you want.
Cash. Compare the base against dated public postings for the same role, city, and stage, not against a big-company salary. Founding engineer salary in 2026 lists verified postings with sources. Note the gap between what you would earn elsewhere and the offer; that gap is what the equity has to justify, every year, for as long as you stay.
Equity. Get the numbers that make a grant comparable:
| Ask for | Why it matters |
|---|---|
| Grant as a percentage of fully diluted shares | Share counts alone mean nothing |
| Last preferred price and current 409A price | The spread tells you what investors paid versus what you will pay to exercise |
| Vesting schedule and cliff | Four years with a one-year cliff is common; anything else needs a reason |
| Exercise window after leaving | 90 days versus several years changes what the grant is worth to you in practice |
| Option type (ISO or NSO) and any early-exercise provision | Tax treatment and timing |
| Acceleration terms | What happens on acquisition |
How a startup explains cash and equity shows what a well-run company puts in writing; if the offer letter does not, ask.
Let the stage set your expectations
The round the company just raised tells you what the grant should be compensating for:
- Pre-seed and Seed. Product risk is real, runway is short, and the grant should be large enough that a good outcome changes your life. Ask about runway in months and what the next round needs to prove.
- Series A. The product exists and the question is whether it scales. Grants are smaller; the trade is less cash risk against less upside. Ask how many engineers came before you and what they own.
- Series B. You are joining a team, not founding one. A "founding" title here is usually a founding-team-of-a-new-product role; make sure the ownership matches.
The four risks, and who carries them
- Company risk. Runway, revenue or usage today, and the next milestone investors expect. Ask directly.
- Role risk. Whether the ownership you were promised survives the next hire. Ask who will manage you in twelve months.
- Founder risk. How the founders decide, disagree, and give feedback. You will find out in the interview if you ask about a decision they got wrong.
- Your own risk. Cash you need, the timeline you can afford, and the market you would return to if it fails.
An offer can be strong on three and still wrong for you on the fourth.
Questions to ask before you say yes
- What is the first product milestone, and how will we know it shipped?
- What decisions will I own on day one? Which ones will I not own?
- How many months of runway, and what does the next raise need to show?
- What is the grant as a percentage, the last preferred price, and the 409A?
- What is the exercise window if I leave, and is early exercise available?
- Who will be hired next, and will I be involved?
- How did the founders resolve the last disagreement about the product?
Write the answers into a startup offer decision brief so you compare offers on the same lines, and if you are weighing more than one, handling competing offers without pressure covers the timing.
When a recruiter is involved
If a recruiter or a network introduced you, ask them for the same answers. A useful introduction comes with the ownership, the stage, and the compensation basis already clarified; a thin one comes with a title and a logo. If you are exploring quietly, say so before anything is shared. How Refery works with candidates explains what we ask for and how sharing preferences are handled; candidates pay nothing.
Sources and limits
Compensation figures linked from this page are dated public postings collected in Refery's salary data methodology. They are examples, not a market survey, and they change. This guide is not legal, tax, or financial advice; grant terms and tax treatment vary by country and by the company's plan documents.
Frequently asked questions
What is a fair equity grant for a founding engineer?
There is no single fair number. Public postings Refery has reviewed show wide ranges at the same title, because the grant depends on the company's stage, the round it just raised, how many engineers are already on the team, and how much of the product the role owns. Ask for the grant as a percentage of fully diluted shares, the current preferred price and the 409A price, the vesting schedule, and the exercise window. Then compare it with the base salary trade you are being asked to make.
Should I take a lower salary for more equity at a Seed-stage company?
Only if you can name the cash you are giving up per year, the equity you are getting in percentage terms, and the scenarios in which that equity is worth more than the cash. If the company cannot tell you the percentage or the last preferred price, you cannot evaluate the trade and should say so.
What does a founding engineer actually own?
The first product milestone, the technical decisions that follow from it, and usually the early hiring of other engineers. If the offer describes a tightly scoped implementation job, it is a senior engineer role with a founding title, which changes what the equity is compensating you for.