OpenAI’s Average Stock Compensation Reaches $1.5 Million, Setting Tech Startup Record

**December 31st** WSJ reports OpenAI is paying some of the highest salaries among tech startups in recent years, with an average stock compensation of roughly $1.5 million for its ~4,000 employees. Per WSJ analysis of Equilar data, over the past 25 years, OpenAI’s compensation in the year prior to a major tech company IPO is 34 times that of 18 peer firms. Financial data shared with investors this summer shows OpenAI’s annual stock compensation is projected to hit ~$3 billion by 2030. The company recently told employees it’s scrapping a policy requiring at least six months of tenure to receive equity— a move that could push salaries higher. Analysis indicates OpenAI’s compensation will reach 46% of revenue by 2025, ranking second only to Rivian (which had no revenue in its pre-IPO year) among firms in the report. For context: Palantir’s stock compensation was 33% of revenue in its 2020 pre-IPO year, Google’s was 15%, and Facebook’s was 6%. (Golden Finance)