OpenAI Sets New Record in Employee Compensation

OpenAI has established a new benchmark for the highest average employee compensation among startups, as reported by The Wall Street Journal. This report indicates that the 4000 employees earn, on average, company stock valued at $1.5 million (~13.5 crore) each within their 2025 remuneration package. Such figures illustrate the fierce competition companies face when recruiting AI talent and the substantial salaries being offered.

Comparative Analysis of Employee Salaries

The report, compiled by Equilar, shows that these compensation numbers are 34 times greater than the earnings of employees at other leading tech firms. This highlights OpenAI’s strategy for retaining its top researchers and engineers amid efforts from competitors who are enticing talent with higher pay.

Comparison with Google

OpenAI’s compensation offerings are significantly more attractive compared to Google’s at a similar phase in its growth. Reports suggest that OpenAI’s stock-based remuneration for 2025 exceeds seven times that of what Google provided in 2003, just before its IPO. However, this heavy investment in employee compensation raises concerns for companies, as such expenses can lead to financial losses in regular operations, and offering stock-based payments may dilute ownership percentages.

Industry Trends in Compensation

OpenAI is not an isolated case in this trend; Meta has also attracted numerous AI researchers and senior executives with lucrative pay packages amounting to hundreds of millions. Investor documents have revealed that OpenAI anticipates disbursing stock-based compensation of up to $3 billion annually through 2030.

Changes in Stock-Based Compensation Policy

Previously, OpenAI required employees to complete at least six months of service before they could access stock or equity grants. The company has now adjusted this policy to facilitate easier access to stock-based compensation for its employees.