OpenAI removes vesting perid so employees get equity sooner
What's the story
OpenAI has decided to end its policy of a six-month equity vesting period for employees, the Wall Street Journal reported. The decision comes after the company had previously shortened the vesting period for new hires from a year to six months in April. The move is aimed at encouraging risk-taking by new employees without the fear of being laid off before receiving their first share allocation.
Encouraging risk-taking
OpenAI's new policy aims to foster innovation
OpenAI's applications chief Fidji Simo explained the rationale behind the new policy change. He said it was designed to encourage risk-taking by new employees, without the fear of being let go before they get their first chunk of shares. With this, OpenAI is also staying competitive in the intense AI talent market, where rivals are offering more generous compensation structures. Elon Musk's xAI made a similar change earlier this summer.