Friends,
Welcome to the first edition of The Wrap Up, where I spotlight all the interesting news related to compensation.
It’s hard to go past the first article, a topic that seems to be dominating the news at the moment (at least in my world) — the $100M pay packages allegedly touted by Meta to lure OpenAI researchers.
It’s got pangs of major league sports controversy. At least in a financial sense.
Did you ever think we’d see a world with these kinds of packages (real or imagined)?
I know I didn’t.
We’ve gone from telling kids to become software engineers to telling them to become AI researchers in the swing of a couple of years. Will the pay packets make them household names like LeBron and Ronaldo?
I also couldn’t go past this hilarious post on LinkedIn about the whole saga, modelled on the famous Reddit format for sharing salary progression.

Enjoy,
Matt
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THE WRAP UP
Welcome to The Wrap Up, your monthly dose of insights on startup people and compensation news, and what it means for you.
Let’s dive into what moved the needle this past month.
You might be living in a bubble if you didn’t hear about Meta allegedly dangling nine-figure packages for top AI talent. Turns out they’re big offers, but maybe not that big (or not all in one year as the media hype suggested). Still, AI comp has entered a new league of its own, closer to major league sports stars than salaried employees. But when your running costs are in the billions, is an offer like this really that outlandish?
Pay transparency is increasingly everywhere, but a big reluctance I often see from those who still have the choice is the fear of its impact on the bottom line. Does this article answer the question it asks? Not really, but it does make clear that while pay transparency is emboldening more people to speak up about pay, it’s also resulting in myriad benefits for the companies that adopt it, via increased trust and loyalty. But when we know how high the cost of replacement can be, it seems like a fair trade.
It looks as though the UK government may be getting onboard with pay transparency, too. They’ve recently proposed a reform aimed at curbing pay gaps that may end in something that ultimately looks consistent with the EU pay transparency directive. The defence, though, appears to be hanging their hopes for its demise on the inflexibility of pay transparency to allow a business to meet its needs, which feels like a lazy attempt at maintaining the status quo.
In a tongue-in-cheek follow up to the above article, this Guardian piece nails one side of the extremes of pay transparency: envy and resentment can surface when perceived inequities are realised. My 2c is that while pay transparency may surface issues, shouldn’t they be ones that were resolved anyway? Your lowly performing, highly paid person is already setting the benchmark for poor behaviour as it continues to go unaddressed. Does their pay suddenly becoming public make that issue better or worse?
I continue to say we’re in a golden era of compensation, and this article sums up exactly why. We’re dealing with a level of complexity never before seen, with geographic and generational nuances being but a few. We’re also highly enabled with the advances in comp tech, and from performance-based incentives to lifestyle benefits, compensation is becoming a bespoke art form. Here’s a great article covering some of the modern ways in which companies are approaching their pay practices.
Nothing new here for those already using contemporary benchmarking platforms, but it’s an insightful look into how AI is augmenting the compensation space. What’s clear is that when you have a good set of robust guidelines and structures, AI can be a powerful interpretation tool. But determining those guidelines and how they evolve with the business continues to be a deeply human encounter.
The IPO drought is a reality check. Equity that was once pitched as a lottery ticket is feeling illiquid. Not to mention the environment is still reeling from high cost of living increases, forcing cash to the fore. Companies that are staying private for longer are having to rethink how the carrot works in this new normal. I think we’ll continue to see a downward trend in both companies offering equity but employees looking for it.
Even though this hit in late May, the insights are fresh: fourteen U.S. states plus DC will mandate transparency by year-end. If you’ve not come across it, this “transparency playbook” includes how to set and achieve your pay transparency level, not just because you’re forced to, but because it’s your strategic differentiator — check it out if you’re grappling with pay transparency in your workplace.
Big tech is trending its comp towards paying fewer people better, with high performers tipped to receive outsized gains against a drop for those on the opposite end of the spectrum. This comes as no surprise in an environment where productivity growth goals are resolute, and talent is plentiful.
Here’s three things that may be helpful for you:
Compensation Tools and Resources: Resources and tools for giving you what you need to build your own startup compensation practices.
Startup People Summit: A 1-day, virtual event & community giving you everything you need to build and scale your people practices. 31 July - 9am-4pm AEST.


