OpenAI recently announced a major policy change that will allow current and former employees to participate equally in the annual stock tender, marking an important step in the company's equity management. The move is aimed at resolving previous restrictions on secondary stock sales and easing the financial pressure on employees, especially former employees who hold large amounts of equity but find it difficult to liquidate it. This move also reflects OpenAI’s efforts in balancing employee rights and interests of the company, as well as its active attempts to respond to employees’ liquidity needs in the context of high valuations.
Global AI giant OpenAI recently announced a major policy adjustment that will allow current and former employees to equally participate in the annual stock tender. This move marks an important change in the company's equity management.
According to CNBC, OpenAI had previously adopted strict restrictions on secondary stock sales, and the company had the power to determine the qualifications of participants, which triggered widespread concerns among shareholders. Many shareholders with millions of dollars worth of equity are worried about not being able to liquidate it. Considering that OpenAI currently has no plans for a public offering and the company's high valuation has deterred potential acquirers, secondary stock sales have become the only way for shareholders to realize some of their paper wealth.
Last week, a document released by OpenAI through its equity management software showed that the company had revised its policies. The new policy makes it clear that "all current and former service providers (including employees and consultants) will be subject to the same sales limits." The change means former employees no longer have to wait months to participate in a deal or face lower sales cap. Previously, in at least two tender offers, the limit was $2 million for former employees and up to $10 million for current employees.
This policy adjustment by OpenAI reflects the company’s efforts to balance employee rights and company interests. As the third most valuable unicorn company in the world, OpenAI’s valuation reached an astonishing US$86 billion (approximately 625.313 billion yuan) in April this year. However, high valuations also bring pressure to liquidate, especially for employees and former employees who hold large stakes but cannot freely trade them.
This policy adjustment may have a positive impact within OpenAI, easing the financial pressure on employees and improving the company’s talent attraction and retention rate. At the same time, this may also stimulate the activity of the secondary market and provide investors with more opportunities to participate in the growth of OpenAI.
Despite the relaxation of stock sales policies, there is still no clear timetable for OpenAI’s IPO plan. Company executives have previously said they would not consider listing the company in the short term. This means that the secondary market will remain the main channel for OpenAI shareholders to achieve liquidity.
OpenAI's move not only improved employee relations, but also laid a more solid talent foundation for the company's future development. Although the IPO is still far away, this move will undoubtedly enhance OpenAI's attraction to talents and improve the company's overall operating efficiency and long-term development potential.