Startups often struggle to compete with big tech companies when it comes to salaries, especially as firms like Meta and OpenAI offer million-dollar packages in the AI race. But experts say early-stage startups aren’t doomed—they can attract top talent by focusing on fairness, generosity, and flexibility in their compensation strategies. At TechCrunch Disrupt 2025, Yin Wu, co-founder and CEO of equity management platform Pulley, emphasized that startups shouldn’t try to match big tech’s paychecks. Instead, they should aim to be as generous as possible with equity, even if it feels excessive at first. “I think it is unlikely, if the company is really successful, you’re going to look back and say, ‘man, I gave away too much equity,’” she said. The key is to reward early contributors fairly, knowing that long-term success will make those equity stakes valuable. Randi Jakubowitz, head of talent at 645 Ventures, added that compensation must be tied to clear performance expectations. She stressed the importance of accountability and proper vesting schedules—especially the cliff period, which determines when employees gain ownership of their equity. “If you don’t move quickly on underperforming hires, that equity is gone forever,” she warned. Clear goals and structured reviews help ensure that compensation aligns with impact. The panel also agreed that startups don’t need to lock in their compensation models from day one. Instead, they should build a fair and consistent framework that can evolve as the company grows. Pulley, for example, uses a standardized pay range for each role, regardless of location, and consistently offers equity in the 90th percentile. This structure allows the company to scale fairly—adjusting the number of shares based on company value while maintaining equity across roles. Rebecca Lee Whiting, founder of Epigram Legal and a fractional general counsel, highlighted that such frameworks also help avoid legal risks. Unequal pay based on gender or location can violate laws in states like California. A transparent, consistent approach not only promotes fairness but also reduces the risk of disputes. Ultimately, experts agree that perfection isn’t required at launch. Founders should focus on creating a culture of fairness and alignment with their mission. “It’s not something you have to get right out of the gate,” Whiting said. “You’ll likely need to adjust after Series B, and that’s okay.” The goal isn’t to get every detail perfect immediately—it’s to build trust, attract the right people, and create a sustainable foundation for growth.