How do remote and in-person hiring practices affect equity grant offers and counteroffer dynamics in 2025-2026?

Question

Rohan Kapadia · Accepted Answer

The short answer
Remote work has significantly influenced hiring and compensation practices, particularly regarding equity grants and counteroffer dynamics. Employers often do not adjust equity offers based on regional pay differentials or the value employees place on remote flexibility, which can lead to disparities. Additionally, counteroffers are less frequently extended to women and faculty of color, highlighting ongoing inequities. Overall, remote work has introduced new complexities that require deliberate consideration to maintain fairness and competitiveness.
Why this question comes up
This question arises as organizations navigate the evolving landscape of remote and in-person hiring, especially in the context of compensation and retention strategies. HR professionals and hiring managers seek to understand how remote work impacts equity grants and counteroffer practices to ensure equitable treatment and competitive positioning in the labor market.
What the data shows
A 2025 study indicates that employees are willing to accept a 25% pay cut for remote roles, reflecting a strong preference for remote work. This willingness suggests that remote work is highly valued, which can influence compensation negotiations and expectations. However, employers often do not adjust compensation to reflect this preference, leading to potential disparities in equity grant offers. For example, in 2025, 62% of multi-location employers implemented geographic pay adjustment policies, with regional differentials ranging from 5% to 30%. These adjustments directly impact the valuation of equity grants, which are often tied to geographic or regional pay standards.
Furthermore, the dynamics of counteroffers reveal inequities; they are less likely to be extended to women and faculty of color, indicating that retention strategies may not be equitably applied across demographic groups. Meanwhile, the shift toward remote work has narrowed the outreach volume gap between remote and in-person roles, suggesting changing hiring dynamics that could influence how equity and counteroffer practices are structured.
When this answer changes
The influence of remote and in-person hiring practices on equity grants and counteroffer dynamics can vary depending on factors such as company size, industry, geographic location, and role seniority. For instance, larger organizations or those in highly competitive sectors may adopt more sophisticated compensation adjustments, while smaller firms might rely less on regional differentials. Similarly, roles with higher seniority may see different counteroffer patterns compared to entry-level positions. These variables can alter the general trends observed.
Common mistakes
A common misconception is that remote work automatically results in lower compensation across the board. In reality, many employees are willing to accept lower pay in exchange for remote flexibility, but this does not mean employers should neglect adjusting equity grants or compensation structures accordingly. Failing to consider regional pay differentials or the value employees place on remote work can lead to inequities and misaligned incentives.
Practical next step
Professionals should review their current remote hiring and compensation policies this week to ensure they account for regional pay adjustments and the value placed on remote work. Specifically, consider implementing or updating geographic pay adjustment policies and evaluating how equity grants are valued across different regions to promote fairness and competitiveness.