Home ยป OpenAI Revises Employee Exit Agreements, Explicitly Excluding Stock Options Previously Granted

OpenAI Revises Employee Exit Agreements, Explicitly Excluding Stock Options Previously Granted

OpenAI has recently come under scrutiny for their unique approach to employee contracts, specifically regarding non-disclosure agreements (NDAs) and vesting stocks. Reports have indicated that OpenAI has the ability to withhold allocated stocks from employees who have left the company, a practice that differs from traditional corporate norms.

Sam Altman, the CEO of OpenAI, has acknowledged the need for adjustments in this regard, emphasizing the company’s commitment to rectifying the situation. In a recent email to current and former employees, OpenAI clarified that they have never withheld or had plans to withhold stocks allocated to employees, regardless of whether the individual previously accepted the terms of the agreement or not. Additionally, the company issued an apology for any confusion caused by the language used in previous contracts that did not align with their core values.

This change in stance by OpenAI has implications for former employees who had previously agreed to the terms of stock allocation upon departure, as the company now states that they “may withhold allocated stocks in the future.”

Source: CNBC

TLDR: OpenAI faced scrutiny over unique employee contracts involving NDAs and vesting stocks, with the company clarifying they do not withhold stocks from employees, regardless of past agreements.

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