OpenAI Chair States Board Has Discussed Equity Compensation for CEO Sam Altman, According to Reuters

OpenAI Board Discusses CEO Compensation but No Decision Made

OpenAI’s Chairperson, Bret Taylor, announced on Thursday that the board has been contemplating whether to grant equity compensation to CEO Sam Altman, although no definitive decision has been reached.

Taylor indicated that there have been no specific figures discussed regarding any potential equity for Altman. Reports earlier in the week suggested that OpenAI is considering restructuring its core business to become a for-profit benefit corporation, with the possibility of Altman receiving equity for the first time.

Since co-founding the company in 2015, Altman has not taken any ownership stake in OpenAI. Despite being a billionaire due to previous startup successes, he has opted not to secure shares in OpenAI to maintain a board composed largely of disinterested directors.

On Wednesday, several high-profile departures from the company were announced, including Chief Technology Officer Mira Murati and senior researchers Barret Zoph and Bob McGrew. Altman addressed these changes during a conference in Italy, asserting that they are unrelated to the ongoing restructuring.

Currently, OpenAI is in discussions to raise $6.5 billion, with potential investors including well-known venture capital firms and major public companies.

The anticipated valuation of $150 billion hinges on the successful execution of the proposed corporate restructuring, which aims to eliminate caps on investor returns. Under the new structure, the for-profit entity would operate without oversight from the non-profit board currently governing OpenAI, which previously participated in Altman’s brief removal from the company last November. Despite the changes, the non-profit will remain in existence and will hold a minority stake in the new for-profit entity.