OpenAI is reshaping Silicon Valley compensation standards by offering an average of $1.5 million in stock-based pay per employee, significantly surpassing Google’s 2004 IPO disclosures and eclipsing the stock compensation averages of 18 other major tech companies. Approximately 46% of OpenAI’s projected 2025 revenue is allocated for stock compensation, placing it at the top among analyzed companies, apart from Rivian. This considerable payout strategy stems from an ongoing AI talent war, exacerbated by Meta’s CEO Mark Zuckerberg’s competitive offers, prompting OpenAI to match or exceed those figures. Notably, OpenAI has also scrapped its six-month vesting requirement for equity, aiming to retain top talent in a high-stakes market. Analysts view these compensation strategies not merely as generous offerings but essential survival tactics for maintaining a competitive edge in the fast-evolving AI landscape. OpenAI’s projected stock-based compensation is set to rise by around $3 billion annually through 2030.
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