The common practice in public companies is to compensate executives with company shares, a tradition that contributed to Elon Musk becoming the richest man on the planet, with Tesla shares forming the basis of his wealth. Now, Sam Altman, head of OpenAI, might be following a similar path.
Potential Share Allocation for Altman
Reports indicate that the OpenAI board of directors is discussing a possible restructuring plan, which could lead to Sam Altman receiving up to 7% of the company’s shares. As part of this process, Altman is expected to step down from leading OpenAI’s non-profit structure. Further clarification from Reuters revealed that his compensation scheme might involve an allocation of OpenAI shares, though the exact details are still pending approval. This was confirmed by the startup’s chairman of the board of directors, Bret Taylor.
Changes in OpenAI’s Management Structure
Altman, one of the two founders still holding positions within OpenAI, previously did not own any shares. He explained this choice as a way to maintain a majority of board members who don’t hold shares in the startup. Recently, Altman urged not to link the announcements about the resignations of OpenAI CTO Mira Murati and two other high-ranking executives with the discussed restructuring. According to Reuters, as OpenAI transitions into a commercial company, its management will no longer be handled by the board of a non-profit organization. The board will remain in the management structure but will only own a small share block in the commercial entity, notes NIX Solutions.
Ongoing Developments and Outlook
Altman clarified that the recent changes in OpenAI’s management were independently prepared for nearly a year and are not directly tied to the upcoming restructuring. He stated that the company is considering steps for the next phase of its development. The ongoing changes, he believes, will strengthen OpenAI and facilitate closer interaction with technical experts. We’ll keep you updated as this story develops further.