How OpenAI’s unique equity compensation works1 min read

OpenAI’s median total compensation package for a Software Engineer is $900k, just shy of a million dollars. The catch is that instead of traditional equity grants, OpenAI issues Profit Participation Units (PPUs).

OpenAI distinguishes itself from the majority of startups by providing PPUs to its employees instead of traditional stock options. To put it simply, while exercising options grants ownership to a portion of the company itself, PPUs represent ownership of a percentage of the company’s *profits*.

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