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Sam Altman addresses 'potential equity cancellation' in OpenAI exit agreements after 2 high-profile departures

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OpenAI employees who left the company without signing a non-disparagement agreement could have lost vested equity if they did not comply — but the policy was never used, CEO Sam Altman said on Saturday.

Both Sutskever and Leike left on Tuesday. Though he did not speak about the reasons behind his sudden departure, Business Insider previously reported that Sutskever, an OpenAI board member, had been in limbo after his attempt to oust Altman as CEO.

Leike kept mum until Friday morning when he said he left because OpenAI's "safety culture and processes have taken a backseat to shiny products."

Vox reported on Friday that their silence could have been due to a nondisparagement agreement forbidding former employees from criticizing the company — and from even acknowledging the existence of the NDA.

On Saturday, Altman confirmed that the contract was real — but said the company has never "clawed back anyone's vested equity." He also said that moving forward, the company would no longer include that clause on exit paperwork.

"this is on me and one of the few times i've been genuinely embarrassed running openai; i did not know this was happening and i should have," Altman wrote on X.

in regards to recent stuff about how openai handles equity:

we have never clawed back anyone's vested equity, nor will we do that if people do not sign a separation agreement (or don't agree to a non-disparagement agreement). vested equity is vested equity, full stop.

there was…

— Sam Altman (@sama) May 18, 2024

BI previously reported that OpenAI's employee compensation includes a flat base salary of $300,000 alongside a yearly grant of around $500,000 in PPUs, or profit participation units, a form of equity compensation.

OpenAI did not immediately respond to a request for comment from Business Insider.

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