Offering employees liquidity opportunities is a key component to winning the AI talent war

The demand for artificial intelligence (AI) talent has never been higher. As companies across industries integrate AI to enhance productivity, improve decision-making and drive innovation, the battle for top AI professionals has reached an intense level. Startups and established enterprises alike are competing fiercely to attract and retain machine learning engineers, data scientists, AI researchers and other AI professionals. But with the stakes so high, salary increases, restricted stock units (RSU) grants and stock options alone are no longer enough to secure the best minds in the field.

One of the more effective, yet often overlooked, ways to win the AI talent war is by offering liquidity opportunities for employees. Private companies, particularly those in the AI space, need to recognize that allowing employees to realize value from their equity holdings can be a game-changer in recruitment and retention strategies. Here’s why liquidity programs are an essential part in today’s AI talent market and how they can give companies a competitive edge.

The AI talent market: Competitive, costly and highly mobile

AI professionals command some of the highest salaries in tech, often exceeding six figures at mid-career levels. In fact, some top AI researchers can earn compensation packages rivaling those of professional athletes, with total compensation potentially exceeding $1 million in certain cases. This is particularly true at leading AI-driven companies like OpenAI, Anthropic, CoreWeave, Databricks and Perplexity, which are known to offer lucrative packages to attract and retain AI talent.

However, despite these generous compensation structures, the competition for talent remains fierce. Many AI professionals not only prefer to work on cutting-edge challenges, but, with the rise of AI-focused startups and venture-backed companies, they are further drawn to the potential upside of equity rather than just a high salary. What’s more, in private companies, stock options and equity grants often come with long vesting periods and uncertain liquidity, making them less attractive compared to immediate cash compensation.

The problem with illiquid equity in AI startups

While stock options and RSUs are frequent components of compensation packages at AI startups, they present a challenge: employees often have to wait years—sometimes even a decade—before they can realize the value of their equity. If the company does not go public or get acquired, employees may never see financial benefits from their stock holdings.

This lack of liquidity is particularly problematic in a high-demand industry like AI, where professionals frequently receive competing offers. If a competing firm offers immediate cash bonuses or more liquid equity, employees may be tempted to leave their existing roles, even if they believe in their current employer’s mission. As a result, companies that fail to provide liquidity solutions risk losing top AI talent to competitors with more attractive compensation structures.

How employee liquidity programs can strengthen AI talent retention

Implementing liquidity programs for employees can dramatically improve a company’s ability to attract and retain AI talent. Here are a few ways companies can provide liquidity while still maintaining financial stability:

1. Secondary market sales

   One of the most effective ways to offer liquidity is through secondary market sales (subject to availability), where employees can sell a portion of their stock to approved investors. Platforms like Forge help facilitate these transactions, allowing employees to cash out some of their equity without waiting for an IPO or acquisition. This approach gives employees financial flexibility while ensuring the company maintains control over its cap table.

2. Tender offers

   Companies can also organize tender offers, in which they or select investors buy back shares from employees at a predetermined price. These structured liquidity events can be scheduled annually or tied to specific milestones, ensuring employees have predictable opportunities to monetize their stock.

   For example, Hightouch, an AI-based platform for customized marketing, recently launched an employee tender offer that may value the business at $1.3 billion.¹ In the tender offer, Stepstone and PeakXV offered to buy up to $30 million in common stock, at a step up in valuation from the $1.2 billion Hightouch netted last month from investors, including Sapphire Ventures.² Under the offer, employees that had been employed for two years were able to sell — lower than the typical four year requirement. Hightouch also gave employees a massive 10-year post-departure exercise window. As Hightouch co-CEO, Kashish Gupta, noted: "We're competing against offers from OpenAI and Anthropic — and those companies have tender offers that make them look liquid.”³

3. Loan programs against equity

   Some companies partner with financial institutions to offer loans backed by employee equity. This allows employees to access liquidity without selling their shares outright. While this method carries some risk, it can be an attractive option for employees who need cash but want to retain their equity stake.

4. Hybrid compensation models

   Companies can redesign their compensation structures to include more immediate cash incentives alongside long-term equity. This might involve partial payouts of equity grants at key milestones or offering cash bonuses in exchange for employees holding onto their stock options longer.

The competitive edge: Attracting and retaining AI talent

AI professionals are not just looking for high salaries; they also want financial security and the ability to participate in the upside of the companies they help build. Liquidity programs create a win-win situation: employees gain financial flexibility, while companies increase retention and reduce the risk of losing key talent to competitors.

For AI startups and high-growth companies, incorporating a structured liquidity program can significantly enhance their attractiveness as an employer. When prospective employees know they won’t have to wait indefinitely to benefit from their equity stake, they may be more likely to commit to a company long-term. Likewise, existing employees who can periodically liquidate some of their holdings are less likely to be poached by competitors offering immediate financial rewards.

The future of AI talent compensation

The AI talent war shows no signs of slowing down. As AI continues to shape industries, the demand for top talent will only grow. Companies that want to remain competitive must go beyond traditional compensation models and incorporate liquidity opportunities into their employee benefit offerings.

By offering structured liquidity programs through secondary market sales, tender offers, and innovative financial solutions, companies can differentiate themselves in the race for AI talent. Providing employees with access to liquidity not only strengthens retention but also fosters a more motivated workforce that can focus on driving innovation rather than worrying about when their stock options or RSUs will become valuable. In the high-stakes battle for AI talent, liquidity is no longer just a perk—it’s a strategic advantage.

Whether through fixed-price tender offers or customized, ongoing liquidity programs, Forge has solutions that can help your team. To learn more, contact us here.