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OpenAI's Average Stock Compensation Reaches $1.5 Million, Setting Record for Tech Startups
Summary: According to WSJ, financial data shows that OpenAI is paying its employees some of the highest stock compensation among tech startups in recent years, with an average of around $1.5 million for its approximately 4,000 employees. WSJ's analysis of Equilar data reveals that in the year before IPOs of major tech companies over the past ...
According to WSJ, financial data shows that OpenAI is paying its employees some of the highest stock compensation among tech startups in recent years, with an average of around $1.5 million for its approximately 4,000 employees. WSJ's analysis of Equilar data reveals that in the year before IPOs of major tech companies over the past 25 years, OpenAI's compensation was 34 times higher than 18 others. Financial data disclosed to investors this summer indicates that OpenAI's stock compensation is expected to increase by around $3 billion annually by 2030. The company has also informed employees of the elimination of a policy requiring at least six months of work at OpenAI to receive equity, potentially leading to further increases in compensation. Analysis shows that by 2025, OpenAI's compensation as a percentage of revenue will reach 46%, second only to Rivian (which had no revenue in the year before IPO). In comparison, Palantir's stock compensation was 33% of revenue in the year before its 2020 IPO, Google's was 15%, and Facebook's was 6%.
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Link: OpenAI's Average Stock Compensation Reaches $1.5 Million, Setting Record for Tech Startups [Copy]
