OpenAI has made significant changes to its stock sale policies, ensuring that both current and former employees have equal opportunities to participate in annual tender offers. Previously reported concerns about limited access to liquidity for shareholders prompted the company to revise its approach.
With OpenAI’s valuation skyrocketing following the success of ChatGPT and no immediate plans for an IPO, secondary stock sales have become crucial for shareholders to realize some of their investments. The new policy allows all sellers, including current and former employees, to have the same sales limit in tender offers.
Former employees were previously at a disadvantage compared to current staffers, with sales often delayed and limits lower for those who had left the company. The company has also walked back provisions that could have allowed it to repurchase shares at its discretion and excluded employees at competitors from participating in tender offers.
While current employees will still have priority in oversubscribed offers, ensuring liquidity for former service providers, OpenAI has taken steps to address employee concerns. The company is also revising documents to eliminate provisions mandating equity redemption at fair market value and allowing former employees to take part in donation rounds, potentially benefiting from tax incentives.
These changes mark a significant shift in OpenAI’s equity policies, aiming to provide a fair and transparent process for all stakeholders, whether current or former employees. As the company continues to navigate its valuation and shareholder concerns, these adjustments are likely to enhance trust and confidence among its workforce and investors.
