Growth & Compensation
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Compensation & Equity Interview Questions

Compensation is the clearest signal of how a company values its people. These 8 questions cut through vague comp conversations to reveal whether a company pays fairly, structures equity honestly, and maintains pay equity across its organization.

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The 8 questions

1

How does your salary structure work? Are there defined bands for each level, and are those bands visible to employees?

Why ask this? Visible bands = transparency. Hidden bands = negotiation advantage for the company.
Green flags
  • Published salary bands for all levels
  • Bands are competitive and regularly benchmarked
  • Clear criteria for where you fall within a band
  • Bands updated annually based on market data
Red flags
  • Salary information is confidential
  • Bands exist but aren't shared
  • 'Competitive compensation' without specifics
  • Wide bands that allow huge variation
2

What percentage of total compensation comes from equity? How is it vested?

Why ask this? 4-year with 1-year cliff is standard. Anything worse needs justification.
Green flags
  • Clear equity structure explained upfront
  • Standard 4-year vest with 1-year cliff or better
  • Equity is a significant portion of total comp
  • Vesting schedule is employee-friendly
Red flags
  • Equity details are vague or complicated
  • Unusual vesting (5+ years, back-loaded)
  • Equity is a tiny portion of total comp
  • Complex conditions on equity (performance-based vesting)
3

How often are equity refreshers provided, and how significant are they?

Why ask this? Initial grant without refreshers means comp declines over time.
Green flags
  • Annual or semi-annual refresher grants
  • Refreshers are meaningful (not token amounts)
  • Refresher process is transparent and predictable
  • Top performers get accelerated refreshers
Red flags
  • No formal refresher program
  • Refreshers are rare or insignificant
  • Refresher amounts are opaque
  • Only retention-risk employees get refreshers
4

What's the current company valuation, and what percentage do current options represent?

Why ask this? 1000 shares means nothing without context on total shares and valuation.
Green flags
  • Transparent about valuation and share count
  • Can explain what your equity is worth in real terms
  • 409A valuation shared with context
  • Honest about dilution risks
Red flags
  • Evasive about valuation or total share count
  • Focus on number of shares, not percentage
  • Unrealistic valuation projections
  • No clarity on liquidation preferences or dilution
5

Do you conduct pay equity audits? Are there unexplained gaps across demographics?

Why ask this? Companies that audit proactively are serious about fair pay.
Green flags
  • Regular pay equity audits (at least annually)
  • Results shared with employees
  • Gaps identified and actively closed
  • Third-party audit for independence
Red flags
  • No pay equity audits
  • 'We believe in meritocracy'
  • Audits done but results not shared
  • Known gaps without concrete remediation plan
6

How do you handle compensation for external hires vs internal promotions at the same level?

Why ask this? External hires getting more creates resentment and attrition.
Green flags
  • Parity between external and internal compensation
  • Regular internal comp reviews to catch gaps
  • Internal promotions come with significant comp increases
  • Policy against external inflation
Red flags
  • External hires consistently paid more
  • Internal promotions come with minimal raises
  • Retention offers only when someone has another offer
  • No formal process for internal equity
7

If someone discovers they're underpaid relative to market, what's the correction process and timeline?

Why ask this? Fast correction = values comp fairness. Slow correction = exploitation.
Green flags
  • Immediate review and adjustment within 30 days
  • Proactive market adjustments without requiring the employee to ask
  • No penalty for raising the issue
  • Back-pay for the underpaid period
Red flags
  • 'Wait for the next review cycle'
  • Correction requires getting another offer
  • Slow process with multiple approvals
  • Gaslighting about market data or fairness
8

How does equity dilution work with new funding rounds? What protections exist for employees?

Why ask this? Dilution can quietly destroy the value of your equity.
Green flags
  • Transparent communication about dilution impact
  • Anti-dilution provisions or refreshers after funding
  • Employees understand their real ownership stake
  • Board-level protection for employee equity
Red flags
  • Dilution not discussed or minimized
  • No protections against dilution
  • Employees don't understand the impact of new rounds
  • Frequent funding rounds without equity refresh

Companies that value strong comp & equity

Vast AI
Vast AI
★ 5 Glassdoor · 9 jobs
Granola
Granola
★ 5 Glassdoor · 18 jobs
Perplexity AI
Perplexity AI
★ 4.7 Glassdoor · 68 jobs
Abridge
Abridge
★ 4.7 Glassdoor · 66 jobs
Cresta
Cresta
★ 4.6 Glassdoor · 116 jobs
OpenAI
OpenAI
★ 4.5 Glassdoor · 672 jobs

Browse 9,293 strong comp & equity jobs

Find companies where pay that matches the expectation.

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Frequently asked questions

What should I ask about compensation and equity in an interview?

Ask whether salary bands are visible, how equity is structured and vested, what the refresher program looks like, and whether pay equity audits are conducted. The most important question: how are internal promotions compensated vs external hires at the same level? This reveals whether the company values retention or just acquisition.

How can I tell if a company pays fairly?

Three signals: (1) transparent salary bands visible to all employees, (2) regular pay equity audits with action on gaps, and (3) internal-external parity (promoted employees paid the same as external hires at their level). Red flags: secretive compensation, wide unexplained pay gaps, and 'competitive compensation' without specifics.

When should I discuss compensation during the hiring process?

Ask the recruiter about salary bands and equity structure in the first call — this saves everyone time. During later rounds, ask about pay equity, refreshers, and internal vs external parity. With the hiring manager or HR, ask about dilution protections and correction processes. Fair companies are comfortable discussing compensation openly.