OpenAI ends ‘Vesting Cliff’ for new employees in compensation-policy change

OpenAI told staff this past week that it was ending a compensation policy that required employees to work at the company for at least six months before their equity vests.

The change to the “vesting cliff,” announced by applications chief Fidji Simo, is designed to encourage new employees to take risks without fear of being let go before accessing their first chunk of equity, according to people familiar with the matter.

OpenAI shortened its vesting period for new employees to six months from the industry standard of 12 months in April. Elon Musk’s xAI, an OpenAI competitor, made a similar change in the late summer, people familiar with the change said.

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