[throw181428]

You're assuming that it would be valued 40M at exit, right?

How would it be different from them giving me 0.5% instead of 1% but at "face value"?

[hbrn]

Correct.

I doubt they can just give it to you at face value. Are there other employees that were incentivized with stock/options? Were there investment rounds? Were you with the company from the beginning?

As a CTO, you can be entitled to higher compensation (both cash and stock), but not special treatment.