How to communicate equity value to employees

How CFOs Can Turn Equity into a Recruiting Superpower

Marty Byrd trying to understand his equity grant

When candidates evaluate job offers, equity can feel like a black box—some mystical asset tied to your company’s future success, with promises of riches or, sometimes, little more than a framed certificate. As a CFO, it’s your job to demystify this value. The challenge? Explaining it in a way that’s both inspiring and realistic.

Curt Sigfstead, CFO of Clio, joined me on the pod to share his four-step framework for making equity resonate with potential hires and employees. It’s a masterclass in combining logic, optimism, and transparency—essential ingredients for converting skeptical candidates into enthusiastic team members.

Here’s how Curt positions equity not just as compensation, but as a stake in something bigger:

1. Set the stage with vision and TAM. Start with the company’s purpose and market opportunity to make the equity story compelling from the outset.

2. Build trust by addressing stability. Lay out the company’s financial fundamentals to reduce anxiety.

3. Educate on the mechanics of valuation. Explain how 409A and historical rounds come together to create value for employees.

4. Inspire ownership. Invite them to connect the dots themselves, making them feel like co-creators of the company’s success.

And here’s where it gets really interesting: Curt’s method isn’t just for recruiting—it’s a playbook for reinforcing an ownership culture across your entire organization.

Let’s break down Curt’s framework in full detail so you can use it in your own equity conversations.