There are unfortunately a lot of variables. I would expect options, double trigger RSU, single trigger RSU, stage of the company, to have different risk/reward functions.
I joined a private "startup" one year before its IPO and got a 40% return on my equity grant's first vest a week after the listing, but ~60% loss on the following grant. The company granted me more shares to make up the difference, so my compensation (almost) never declined, despite huge drop in value. Since the all time low, the stock is up 40%.
This year, I will/have receive about $300k USD in stock (which I can immediately sell on the market). My base pay is $245k/yr USD, so equity is a significant part of my compensation.
Every employee at the company benefited from the equity, although some should have sold when they could have.
0/ Options
Options are typically bad, because they expire when you leave. For example, the company gives you the option to give them $20k per year to exercise options.
- But if you're only making $100k/yr, $20k/yr in post-tax paper money isn't great
- But if you don't exercise the options when you get them, you may need to pay additional money for taxes
- But if you leave the company, you may only have 1-6 months to pay for those options.
IMHO, the only way to make money with option equity is if you are very lucky and can stay the entire time at the company.
1/ RSUs
RSUs are shared by later stage company and can be sold before a liquidity event. You owe taxes when they vest, unless they are double-triggering, unlike options. but at this point in the company's lifecycle, hopefully those rsus will be worth something.