OpenAI's average stock compensation reaches $1.5 million, setting a record for tech startups

On December 31, according to WSJ reports, financial data shows that OpenAI is paying its employees the highest salaries among nearly all tech startups in recent years, with an average stock compensation of about $1.5 million per employee among approximately 4,000 staff members. WSJ’s analysis of Equilar data indicates that in the year before IPO, major tech companies’ salaries were about 34 times higher than those of OpenAI. Financial data disclosed to investors this summer suggests that OpenAI’s stock compensation is expected to increase by approximately $3 billion annually before 2030. The company has recently notified employees that it will cancel a policy requiring employees to work at least six months at OpenAI before being eligible for equity, which may lead to further salary increases. Analysis shows that by 2025, OpenAI’s compensation as a percentage of revenue will reach 46%, only lower than Rivian (which did not generate revenue in the year before its IPO) among the companies analyzed in the report. In comparison, Palantir’s stock compensation accounted for 33% of revenue in the year before its 2020 IPO, Google 15%, and Facebook 6%. (Jin10)