Do early employees ever receive actual equity as opposed to mere options?

I understand that any equity would almost-certainly be 'vested' equity but someone told me today that it is unheard of for employees to received anything other than stock-options. Is this really the case? When you look on AngelList at companies offering 0.5-2% equity for certain key positions, are they referring to options or actual equity? Finally, for extra credit, if anyone cares to explain how either employee equity or options might be affected by dilution that would also be most interested to read.<p>muchas gracias!