[j_baker]

At most private companies, stock options aren't worth the paper they're written on. Unless of course the company sells, in which case they're worth slightly more than the paper they're written on. And besides that, to exercise them you usually have to pay a pretty hefty sum. I generally don't consider equity as a part of my compensation package when I work for a private company.

[ryandrake]

Best response so far. Your equity compensation is worth what you can currently sell it for. If you can't sell it, it's worth nothing. You should consider it an extremely fortunate and lucky turn of events should your equity become both liquid and in the money--you shouldn't expect it as a given.

[bkjelden]

This just seems too black and white for the current environment, though.

A seed stage startup? Sure. But if Uber made you an offer tomorrow, would it really be prudent to value the equity at $0?

[aetherson]

I mean, that's pretty true for a lot of traditional start-ups.

It's not very true for unicorns. Stock in the unicorns is going to be worth something -- it's just frustrating to try to realize that value right now.