Nice polarising title, but: 1. You're not getting screwed, you are making a choice, which is driven by market factors like your alternatives, expected utility from the job etc. 2. The numbers given are quite extreme - if the guy is really worth 100k I find it hard to believe that he would be offered 50k and only 1%. Also his option stake could raise with more responsibility given, this is just the initial negotiation point as I see it. 3. It only makes sense in the Valley or US.