Does not include stock-based compensation
It was revealed that OpenAI CEO Sam Altman received compensation of around 100 million won last year. This does not include stock incentives.
On the 20th, Bloomberg reported that CEO Altman received $76,001 (approximately 106.26 million won) in compensation from the company in 2023, citing a report submitted by OpenAI to the U.S. Internal Revenue Service. This is a slight increase from the $73,546 CEO Altman received in 2022. Altman has said he receives “minimum compensation to receive health insurance.”
CEO Altman’s salary is low compared to other major executives. Former Open AI chief scientist Ilya Sutskever, who led Altman’s firing in the past but left the company in May, received $322,201 in compensation last year, making him the highest-paid executive.
Twitch co-founder Emmett Shea, who served as interim CEO while Altman left the company, received $3,720. Although his tenure lasted only three days, he received his salary from November 19 to November 29 on paper. This means he received $338.18 per day, including weekends.
However, this report did not include stock-based compensation that OpenAI executives may have received as the company’s value soared. OpenAI is reportedly considering providing shares to CEO Altman as it discusses converting from a non-profit to a for-profit company.
Reporter Jong-ho Han [email protected]
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– How does executive compensation in tech compare to other industries?
Title: An Insightful Conversation on AI Leadership and Executive Compensation
Interviewer (Time.news Editor): Welcome to Time.news! Today, we’re diving into a fascinating subject concerning the world of artificial intelligence and the leadership behind it. We have Dr. Emily Carter, an expert in technology management and executive compensation, here to shed light on recent revelations about OpenAI’s CEO Sam Altman and the broader implications of executive pay within tech giants. Thank you for joining us, Dr. Carter!
Dr. Emily Carter (Expert): Thank you for having me! It’s a pleasure to be here.
Editor: Sam Altman’s reported cash compensation of approximately $76,000 has caught a lot of attention. Given the valuation and the growth potential of OpenAI, how do you interpret this figure?
Dr. Carter: It’s intriguing, isn’t it? Altman’s salary appears modest, especially when you consider the immense influence and responsibility held within a leading tech company. His statement about taking only the minimum to maintain health insurance suggests a philosophical stance towards compensation—perhaps prioritizing the company’s mission over personal financial gain. However, this raises questions about how we value leadership in such transformative industries.
Editor: Indeed, it’s a notable perspective. What implications might this have for OpenAI’s employees and the tech industry as a whole?
Dr. Carter: A low salary can create a culture of fairness within an organization, showing that leadership is not necessarily in it for the money. However, it may also set unrealistic expectations for other employees. When the top executive earns so little in cash, it could lead to challenges in motivating staff unless they are compensated adequately in other ways—like stock options or innovative projects that foster a sense of ownership and growth.
Editor: Speaking of stock-based compensation, the report notes that Altman’s salary doesn’t include any stock incentive, but that OpenAI is contemplating shares as they shift to a for-profit model. How significant is this shift?
Dr. Carter: Transitioning from a non-profit to a for-profit model can have profound repercussions. It alters the incentive structure within the company. If Altman and other executives receive shares, their financial success becomes tied to the company’s performance in the market. This shift could also attract more experienced talent who expect standard compensation packages, including equity. That distinction between cash salary and potential stock value is critical in tech, where growth can be exponential.
Editor: You mentioned the former chief scientist Ilya Sutskever, who received a much larger salary. Does that create a disparity that could affect team dynamics?
Dr. Carter: It certainly could. When one executive earns significantly more, it can create a sense of inequity within the team, leading to potential dissatisfaction. This is where transparency in compensation becomes vital. Companies should strive to communicate the rationale behind pay structures to avoid morale issues and maintain strong team cohesion.
Editor: And then there’s the brief tenure of interim CEO Emmett Shea, who received a notable daily salary. What are your thoughts on that situation?
Dr. Carter: It highlights an interesting aspect of executive pay in startups and tech firms. High pay for short periods can invite scrutiny. However, in fast-moving sectors like AI, the contributions of interim leaders can be crucial for navigating transitions effectively. It’s a balancing act—ensuring that compensation reflects both the risks involved in leadership and the contributions made during critical periods.
Editor: As OpenAI considers their future, with talks of stock compensations and transitioning to a for-profit model, what should their leadership keep in mind?
Dr. Carter: They should focus on aligning company values with compensation strategies. It’s essential that any change in compensation communicates a commitment to both employee welfare and company performance. Moreover, they must remember that maintaining a transparent, equitable pay structure will be key to retaining top talent and fostering a culture of innovation, which is vital in the rapidly evolving field of AI.
Editor: Thank you, Dr. Carter, for sharing your insights into the complex dynamics of leadership compensation and its implications within the tech industry. It’s a fascinating discussion that undoubtedly will evolve as OpenAI navigates its future.
Dr. Carter: Thank you for having me! I look forward to seeing how these changes unfold in the industry.
Editor: And to our viewers, stay tuned to Time.news for more in-depth discussions on the intersections of technology and society!