I have read many times on various HN threads people&#x27;s disdain for taking equity in non-public companies as partial compensation. I&#x27;ve heard them say, &quot;they are likely worthless.&quot; I&#x27;d like to know if they are referring to my particular type of equity.<p>I was offered 5% of the common shares of the profitable (most years) company that I work for because I was an early employee and I&#x27;ve contributed a lot to the growth of the company over the years and the owner wanted to keep me around. In exchange, I accepted my salary being frozen for about 5 years (no raises etc.)<p>Being a common share holder, I am entitled to a distribution each year based on our profit (5% of the profit). This is commonly anywhere between $20-40k (to me). We&#x27;ve had years where it has been zero though due to slower business. Additionally if the company were to be sold, or if I were to leave the company, the company would get a valuation and I would be paid out for my percentage. This seems like a pretty good deal to me. The contract was pretty loose&#x2F;poorly written, but this is how it has been working so far.<p>Can someone tell me if all the advice I always read on here about the non-value of equity is not really intended for my particular equity situation? I really don&#x27;t know a lot about these things, just how its been working so far for me. All of the advice always makes me question if I&#x27;m making the right decision for my career.
Ask HN: But are MY shares actually worth something?