A high profile COO who has worked in multiple US companies is currently conducting a London job search, we spoke about ideal next roles.
She is prioritizing equity as the main driver, this threw me as the odds on a successful trade sale or event that leads to an equity pay-out is about 5% in the UK.
I think it’s worth securing equity in high growth UK based companies but it must be treated as a bonus if everything goes to plan.
If asked, my advice would be:
1. Growth potential of the company and confidence in the founder
Equity in a slow-growth company is worthless, regardless of percentage.
For equity to be a genuine wealth driver, the business must have a clear trajectory toward Series C+, PE recap, or secondary sale.
2. Role match & operational autonomy
As COO, her ability to directly influence key valuation drivers (margins, retention, scale) determines whether the equity becomes valuable.
3. Equity structure & liquidity rights
Equity belongs in the top 3, but how it’s structured matters far more in the UK than in the US. Things to consider.
EMI Scheme vs. Unapproved Options:
Liquidity Clauses
Vesting & Good/Bad Leaver Terms
4. Culture alignment
The average tenure of a growth-stage COO is 2.5 to 3 years. If she gets pushed out before her cliff or major vesting milestones due to cultural friction with the founder and team, the equity strategy fails completely.
5. Base salary
Needs to be highly competitive, but rarely life-changing at the top tax brackets in this current high tax climate; anything above £120K you’re going to be slammed with high tax. With the worst case scenario the £100K parent tax trap, forcing executives to turn down pay increases to avoid having little to no increase in take home.
The UK’s top marginal tax rate hits quickly. Base salary should cover lifestyle and downside risk, but shouldn’t be the core negotiation lever if the company checks boxes 1–3.
Conclusion
If looking at Early-Stage (Seed / Series A): Push Equity down to 4 or 5. Prioritize Role Match, Base, and Culture.
If looking at Late-Stage / Growth (Series B/C+ or PE-Backed): Keep Equity at 2 or 3
Get in touch
Let’s swap notes in the comments, curious to see how people view equity in the UK 2026.
DM Ellis on LinkedIn for a confidential chat and further information.