Here is a breakdown:
Position - interim CTO.
Salary offer - slightly below the market.
Equity - 2% over 4 years
Startup valued(based on the seed round) rougly near 8-12MM
Series A is coming soon.
Chances to succeed - hard to say :)
The concern is that 1.5% even after Series A becomes de-factor 1%, after possible series B-C - it will become - somewhere near 0.5% of the company.
Hoping to work there for the next 5 to0 7 years until it becomes... 200MM company.
At the end of the journey if EVERYTHING goes well I'll make 0.5% of this exit at best, so giving all that -
IS IT A FAIR OFFER?
It really depends on how much money the company has already raised and from which investors. It is not the same to have the valuation established by sophisticated investors than being a valuation that was priced by family and friends during an initial round of financing. Another important factor is your industry. How important is the CTO? If it is a tech driven operation I have seen the equity go up to as much as 10% at this stage. My personal perspective here is that 2% seems low as at your current stage there will be at least 3 or 4 more rounds before the company is able to exit.
I agree with Alejandro, seems low to me at this stage. After B and C it could be even lower than 0.5%.
But of course the level of traction in the market, and the investors/composition of the team, and the capacity for the team to succeed are all factors that come into play.
But intuition says something closer to 4-5% is more realistic.