Joining public or late stage pre-IPO companies, equity provides the possibility of real wealth. There is a great Wealthfront article about this -- that if you live in the bay area and have a normal nuclear family, you <i>need</i> equity if you hope to pay for a house, college, etc.<p>I&#x27;ve seen this in my own life and in many colleagues, friends, and people I&#x27;ve hired. It&#x27;s not a guaranteed paycheck, but in the bay area getting a healthy equity grant is part of the standard comp package. Without luck, it can be a nice bonus. With some luck it can really move the needle. And with ISO&#x27;s especially you can choose when to pay taxes on the income.<p>I know that outside the bay area comp packages are structured differently -- and often less lucratively.