Vox reported that OpenAI pressured departing employees to sign restrictive exit documents by threatening to withhold vested equity, a practice uncommon in Silicon Valley. Despite claims of ignorance by OpenAI leadership, internal documents suggest key executives, including CEO Sam Altman, were aware of these provisions. Following backlash, OpenAI has apologized and committed to changing their policies, including removing nondisparagement clauses and ensuring former employees' equity rights are respected.

Elon Musk is encouraging Tesla employees to excel by suggesting they could qualify for a new stock option grant program for high performers. An internal memo revealed that Tesla will conduct a comprehensive review to award stock options for exceptional performance, as well as offer ongoing spot option grants for outstanding contributions. Despite not awarding merit-based stock grants last year due to financial challenges, Tesla plans to reward employees with long-term financial incentives through this new program, aiming to boost productivity and recognize significant achievements.

Employees often underestimate the wealth-building potential of their equity compensation, viewing it as a minor benefit rather than a serious investment due to its lack of immediate cost. This perception, coupled with a lack of transparency and understanding about liquidity options, can lead to challenges in realizing the value of these holdings. Employers need to improve education and facilitate liquidity opportunities, potentially through secondary market platforms, to enhance the perceived value of equity compensation and support employees in maximizing their financial benefits.

The Delaware Court of Chancery recently invalidated Elon Musk's equity compensation plan with Tesla, which was criticized for being excessively large compared to peer plans and lacking proper negotiation. The court found that Musk effectively controlled Tesla in the context of the award, and that the approval process was flawed, including misleading proxy statements and insufficient benchmarking. As a result, the court determined the award was unfair and ordered it rescinded.

Revolut is in discussions with Greenoaks to sell around $500 million of employee-owned shares, aiming to boost its valuation to $45 billion ahead of a potential IPO. The sale would allow early employees to cash out their holdings, a common practice when startups go public. This move also positions Revolut advantageously despite the uncertain IPO climate due to recent higher interest rates.

Morgan Stanley at Work has launched a new digital experience for financial benefits participants, featuring a public-facing website designed to enhance the pre-login experience. The site aims to improve accessibility and understanding of employee benefits through intuitive navigation, educational content, and support options, including a "hand raise" feature for connecting with Financial Advisors. This launch follows the completion of Morgan Stanley's back-office integration of E*TRADE and Solium, and it provides a unified entry point for participants to access a wide range of financial services, including equity compensation and retirement plans.

Fast-growing companies in tech and other sectors often implement stock plans without proper planning or oversight, leading to significant compliance risks, especially when operating in multiple countries. These companies must consider local tax, social security obligations, and regulatory complexities to avoid financial and administrative issues. Employee Stock Ownership Plans (ESOPs) and carefully managed stock plans offer valuable incentives for employees while aligning their interests with the company's success, provided the compliance challenges are adequately addressed.

The healthcare industry is experiencing significant consolidation, often leading to higher prices and reduced patient choice, with many practices being acquired by private equity firms or hospital systems. This trend has driven many physicians away from private practice due to increasing operational costs and regulatory burdens. However, Employee Stock Ownership Plans (ESOPs) present an alternative by allowing physicians to sell their practices to employees, thereby retaining control and reaping financial benefits without sacrificing autonomy or the quality of patient care.