Startups racing to dominate artificial intelligence are rewriting the rules of compensation, offering significantly higher cash salaries to lure a limited pool of elite talent, The Wall Street Journal writes.
Once reliant on equity-heavy pay packages, many young companies are now boosting base salaries—sometimes rivaling or exceeding those at Big Tech firms—as competition intensifies.
Median base pay for software engineers at venture-backed startups has climbed sharply in recent years, with top candidates commanding $250,000 to $400,000 offers, even with limited experience. Companies are also experimenting with profit-sharing, performance bonuses and faster equity liquidity through tender offers.
The shift reflects both abundant venture funding and a winner-takes-most hiring environment, where only the top tier of candidates sees outsized rewards. But as cash replaces long-term equity incentives, startups may face a new challenge: retaining the very talent they’re paying a premium to attract.
