Quick Answer
Equity refresh grants are annual stock awards that typically range from 10-40% of your base salary, with senior employees often receiving 20-50% of their total compensation in equity. For example, a $150,000 salary might come with $30,000-$60,000 in annual stock grants.
Best Answer
Marcus Rivera, Compensation & Benefits Analyst
Best for senior professionals managing significant equity compensation as part of their total package
What are equity refresh grants?
Equity refresh grants are ongoing stock awards that companies give to retain talent after your initial hiring grant. Unlike your initial grant (which might vest over 4 years), refresh grants typically happen annually and vest over 3-4 years, creating "golden handcuffs" that encourage you to stay.
Typical refresh grant amounts by level
Refresh grants usually scale with your role and performance:
How refresh grants work in practice
Example: Senior Software Engineer at a public tech company
Year 3 equity income:
Types of equity refresh grants
Restricted Stock Units (RSUs) - Most common at public companies
Stock Options - Common at startups and some established companies
Performance Stock Units (PSUs) - Used for senior roles
How companies determine refresh amounts
Key factors affecting your refresh grants
Tax implications of equity compensation
For RSUs (most common type):
What you should do
1. Understand your grant schedule - Track when each grant vests to plan tax implications
2. Model different scenarios - Use our tools to calculate take-home value at different stock prices
3. Plan for tax events - Large vesting events can push you into higher tax brackets
4. Diversify gradually - Don't hold too much company stock relative to your total portfolio
5. Negotiate strategically - Understand market rates for your level and performance
Use our [job offer comparison tool](job-offer-compare) to model the total value of different equity packages over time.
Key takeaway: Typical equity refresh grants range from 15-60% of base salary depending on your level, with senior roles often receiving more total compensation from equity than salary.
*Sources: [IRS Publication 525](https://www.irs.gov/pub/irs-pdf/p525.pdf), [IRC Section 83](https://www.law.cornell.edu/uscode/text/26/83)*
Key Takeaway: Equity refresh grants typically range from 15-60% of base salary and vest over 3-4 years, creating ongoing retention incentives with significant tax implications upon vesting.
Typical equity refresh grant amounts by company type and job level
| Company Type | Mid-Level Employee | Senior Employee | Director Level |
|---|---|---|---|
| FAANG/Big Tech | $30K-$50K | $60K-$120K | $150K-$400K |
| Public Tech (Non-FAANG) | $15K-$30K | $35K-$75K | $75K-$200K |
| High-Growth Startup | $20K-$60K | $50K-$150K | $100K-$500K |
| Traditional Fortune 500 | $5K-$15K | $15K-$40K | $40K-$100K |
More Perspectives
Sarah Chen, Payroll Tax Analyst
Best for employees receiving their first equity grants or trying to understand how stock compensation works
Equity refresh grants for typical employees
If you're new to equity compensation, refresh grants might seem complicated, but they're essentially annual bonuses paid in company stock instead of cash. The key is understanding that these grants vest (become yours) over time, typically 25% per year over 4 years.
Simple example: Mid-level employee
Your situation: $100,000 base salary, receive $20,000 refresh grant annually
Year 1: Receive $20,000 grant (vests 25% per year)
Year 2: Receive another $20,000 grant + $5,000 vests from Year 1 grant
Year 3: Receive another $20,000 grant + $5,000 vests from each of Years 1-2
Year 4: Steady state = $20,000 vesting annually from overlapping grants
What this means for your taxes
When stock vests, it's treated like receiving a cash bonus:
Should you sell or hold vested shares?
Most financial advisors recommend selling at least some shares immediately because:
Key takeaway: Equity refresh grants are annual stock bonuses that vest over time — treat them like cash income for tax planning and consider diversifying by selling some shares when they vest.
Key Takeaway: Equity refresh grants are annual stock bonuses that vest over time and should be treated like cash income for tax planning purposes.
Marcus Rivera, Compensation & Benefits Analyst
Best for late-career employees managing equity compensation in their pre-retirement planning
Managing equity grants near retirement
If you're within 5-10 years of retirement, equity compensation requires special consideration because you may not be around for full vesting periods, and large equity income can affect your tax planning and Medicare premiums.
Key considerations for pre-retirees
Unvested grants at retirement:
Tax planning with large equity income:
Medicare implications:
Strategic timing for late-career equity
1. Review your grant schedule - Understand what you'd forfeit by retiring early
2. Consider phased retirement - Some companies allow part-time work to continue vesting
3. Plan around tax years - Time retirement to minimize high-income years
4. Evaluate retention offers - Companies may accelerate vesting to retain experienced employees
Key takeaway: Pre-retirees should carefully time retirement around equity vesting schedules and consider the long-term tax and Medicare premium implications of large equity income.
Key Takeaway: Pre-retirees should time retirement carefully around equity vesting schedules and consider how large equity income affects taxes and future Medicare premiums.
Sources
- IRS Publication 525 — Taxable and Nontaxable Income
- IRC Section 83 — Property Transferred in Connection with Performance of Services
Reviewed by Marcus Rivera, Compensation & Benefits Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.