Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

OpenAI chair says board has discussed equity compensation for CEO Sam Altman

Published 09/26/2024, 03:19 PM
Updated 09/26/2024, 04:41 PM
© Reuters. FILE PHOTO: Sam Altman, CEO of OpenAI, attends the Asia-Pacific Economic Cooperation (APEC) CEO Summit in San Francisco, California, U.S. November 16, 2023. REUTERS/Carlos Barria/File Photo

(Reuters) -OpenAI Chair Bret Taylor said on Thursday the company's board has discussed whether to compensate CEO Sam Altman with equity but no decision has been made.

In a statement, Taylor said no specific figures have been discussed for any equity compensation for Altman.

Reuters reported on Wednesday that OpenAI was working on a plan to restructure its core business into a for-profit benefit corporation and that Altman would receive equity for the first time in the for-profit company.

Altman, who cofounded the company in 2015, has not taken a stake in OpenAI up to this point. Already a billionaire from his multiple startup investments, Altman has previously stated that he chose not to take shares in OpenAI because the board needed a majority of disinterested directors with no stake in the company.

Chief Technology Officer Mira Murati and senior research executives Barret Zoph and Bob McGrew abruptly announced their departures from the company on Wednesday. Speaking at a conference in Italy on Thursday, Altman denied that there was any link between the personnel changes and the restructuring.

OpenAI is in talks with investors to raise $6.5 billion. Expected backers include venture capital firms Thrive Capital and Khosla Ventures, as well as public companies Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL).

© Reuters. FILE PHOTO: Sam Altman, CEO of OpenAI, attends the Asia-Pacific Economic Cooperation (APEC) CEO Summit in San Francisco, California, U.S. November 16, 2023. REUTERS/Carlos Barria/File Photo

Reuters reported that the company's potential $150 billion valuation is contingent on whether it succeeds in executing a corporate restructure, which would also entail the removal of a cap on returns for investors.

The proposed for-profit entity would no longer be controlled by the non-profit's board, which currently governs OpenAI and was responsible for Altman's brief ouster from the company last November. The non-profit will continue to exist and own a minority stake in the for-profit company, the sources said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.