Patrick Vallance says government working with Chinese officials to remove postings from Alibaba after Biobank data breach last week

There have been further listings of confidential health records of UK volunteers on the Chinese website Alibaba since the breach reported last week, and the government is braced for further leaks, the science minister has said.

Addressing a House of Lords debate on the attempted sale of data belonging to 500,000 UK Biobank volunteers, Patrick Vallance said the government had worked with Chinese officials to remove additional postings on the online marketplace.

LOS ANGELES, April 28 — Pop superstar Taylor Swift filed trademark applications for two audio clips and one image of herself in what a trademark attorney said is an attempt to protect her voice and likeness from deepfake videos and audio created by artificial intelligence.

The applications were filed with the US Patent and Trademark Office on Friday and list Swift’s TAS Rights Management as being the owner of the audio clips and image.

A spokesman for Swift did not immediately respond to a request for comment yesterday, nor did lawyers who were listed on the filings.

In one of the audio clips, Swift is heard saying: “Hey, it’s Taylor Swift, and you can listen to my new album, The Life of a Showgirl, on demand on Amazon Music Unlimited.”

The second clip says: “Hey, it’s Taylor. My brand new album The Life of a Showgirl is out on October 3 and you can click to presave it so you can listen to it on Spotify.” 

The image Swift is seeking to trademark is of her onstage in a sequined outfit, pink guitar in hand.

Swift’s image and voice have been used in countless AI-generated deepfakes - from false advertising to fake political endorsements to explicit images.

Actor Matthew McConaughey has had similar filings approved. He told the Wall Street Journal in January that “we want to create a clear perimeter around ownership with consent and attribution the norm in an AI world.”

Trademark attorney Josh Gerben, who first publicised that Swift made the applications on his blog on Monday, wrote that they “are specifically designed to protect Taylor from threats posed by artificial intelligence.”

“While existing ‘Right of Publicity’ laws offer some protection against unauthorized use of a famous individual’s likeness, trademark filings can provide an additional layer of protection,” Gerben wrote.

Gerben added that registering a celebrity’s spoken voice is a new use of trademark registration that has not been tested in courts.

“Historically, singers relied on copyright law to protect their recorded music,” Gerben wrote. “But AI technologies now allow users to generate entirely new content that mimics an artist’s voice without copying an existing recording, creating a gap that trademarks may help fill.”

Gerben said the photo Swift is seeking to trademark serves a similar purpose.

“By protecting a distinctive visual, down to Swift’s commonly worn jumpsuit and pose, Swift’s team may gain additional grounds to pursue claims against manipulated or AI-generated images that evoke her likeness,” he wrote. — Reuters

1. What Is an Incorporation?

Incorporation is the legal process of forming a corporation—a separate legal entity that exists independently of its owners. A corporation can enter into contracts, own assets, incur liabilities, pay taxes, and engage in legal proceedings in its own name. Corporations are created under the authority of state law and are governed by a board of directors, officers, and shareholders. For startups and small businesses, incorporating is a foundational step in building a company with growth, investment, and long-term planning in mind.

A corporation is formed through the filing of Articles of Incorporation (sometimes called a Certificate of Incorporation) with the appropriate state agency—typically the Secretary of State. Once established, the corporation becomes a separate entity from the individuals who founded it. This separation provides limited liability protection, meaning shareholders are generally not personally responsible for the corporation's debts or legal obligations. The owners of a corporation are its shareholders, who elect a board of directors to oversee and govern the company.

Incorporating is typically one of the first major legal steps a startup takes, and for good reason. A corporation allows founders to allocate shares, attract investment, and implement stock option plans for early employees. The ability to issue equity—either for funding or talent acquisition—is one of the defining reasons startups adopt the corporate structure early in their lifecycle. This framework also ensures business continuity and is preferred by venture capitalists and institutional investors who demand transparency, predictability, and governance.

2. What Are the Different Types of Corporations?

Many startup businesses are started as one of three business entities: a C corporation, an S corporation, or a Limited Liability Company (LLC). Each of these has its own set of rules, advantages, and disadvantages. A C corporation is the most common corporate structure and the one preferred by venture capital investors. It is a legal entity that is taxed separately from its owners. An S corporation is similar to a C corporation but is structured to avoid double taxation by passing corporate income, losses, deductions, and credits through to shareholders for federal tax purposes.

A C corporation can have an unlimited number of shareholders, and shareholders can include individuals, corporations, and partnerships. In venture capital-backed companies, founders typically hold common stock while venture capitalists hold preferred stock. An S corporation, by contrast, is limited to a maximum of 100 shareholders, all of whom must be U.S. citizens or residents. S corporations cannot have corporations or partnerships as shareholders, and they are only permitted to have one class of stock. These restrictions make S corporations less attractive for high-growth startups seeking outside investment.

An LLC is a hybrid entity that combines the liability protection of a corporation with the tax flexibility and simplicity of a partnership. The owners of an LLC are called members, and the LLC is governed by an Operating Agreement rather than bylaws. LLCs can elect pass-through taxation, meaning profits are only taxed at the member level, not at the entity level. While LLCs offer flexibility and simplicity, venture capital investors are unlikely to invest in them, preferring the preferred stock structure available in C corporations. Many VC-backed startups are structured as Delaware C corporations.

3. How Do You Choose a State of Incorporation?

Because the laws that affect corporations vary from state to state, one of the most important early decisions an entrepreneur must make is which state to incorporate in. As a practical matter, the most common answer is to incorporate under the laws of the state in which the corporation intends to conduct its principal business. If you are a California business, for example, California incorporation likely makes the most sense from a practical and cost standpoint. Incorporating in your home state typically means fewer extra filings and lower compliance costs compared to incorporating in a different state.

Delaware is a popular alternative and is considered the gold standard for corporate law. Delaware has a well-developed, business-friendly body of corporate law, a sophisticated court system (the Court of Chancery) that handles corporate disputes, and a flexible corporate statute that gives companies significant latitude in structuring their governance. Delaware may make the most sense if the company is backed by venture capitalists with a clear goal of going public, or if the company anticipates significant investment from institutional investors. Most legal counsel and investors are familiar and comfortable with Delaware corporate law.

However, incorporating in Delaware when you primarily do business in another state comes with added costs. If you incorporate in Delaware but operate in California, for example, you will need to qualify to do business in California as a foreign corporation, which means additional filings and fees. You will essentially be subject to corporate compliance requirements in both states. For very early-stage companies with no outside investors yet, incorporating in your home state is typically the simpler and more cost-effective choice. Most states also provide pamphlets on how to incorporate, with sample forms available on the Secretary of State's website.

4. How Do You Name Your Corporation?

Choosing a name for your corporation is a serious decision that impacts your ability to create the documents necessary to properly form the corporation. Not only does the name you choose affect your customers' perception of your company, but the uniqueness of your name can also affect future trademarks, service marks, and your ability to conduct business in your own state and in other states. You should conduct thorough research before settling on a corporate name to avoid legal conflicts and ensure the name is available for your use.

Before you choose a name for your corporation, you should conduct several key searches. First, determine whether another company has filed a conflicting trademark or service mark with the U.S. Patent and Trademark Office. Second, confirm that your proposed name is available in the key states in which you intend to do business—a conflict in another state generally prevents your company from qualifying to do business there under that name. Third, check whether you can acquire the desired domain name that matches or closely reflects your corporate name. All three factors should align before you proceed.

Most state corporation statutes require that your corporation's name include a word such as 'Corporation,' 'Company,' 'Inc.,' or 'Incorporated.' Many state laws also prohibit using certain words such as 'Bank' or 'Insurance' in a corporate name unless the entity qualifies as such. Because many business names are already taken, be prepared to check the availability of several names at once. After you receive clearance on a name, you can either incorporate right away or reserve the name by filing a Name Reservation with the Secretary of State. The Secretary of State's office can provide the exact procedure for your state.

5. What Are Articles of Incorporation?

The Articles of Incorporation—sometimes called a Certificate of Incorporation—is the official document filed with the Secretary of State to legally create the corporation. After you select the corporate name and state of incorporation, filing this document is the key step that brings the corporation into legal existence. This filing can be done by a corporate lawyer, or with the help of an online incorporation service. The Articles of Incorporation are typically short, running just two to three pages, but they contain several critically important provisions.

The key sections of the Articles of Incorporation include the corporate name, the purpose of the corporation, the authorized capital, and the name and address of the registered agent. The purpose clause in many states—including California and Delaware—can simply state that the corporation is organized to engage in any lawful activity, which gives the company flexibility to expand into almost any business area. The authorized capital section sets forth the total number of shares the corporation can issue, the par value per share, and the classes of stock. Authorizing a sufficient number of shares to cover founder shares, employee options, and future investor equity is important.

The registered agent listed in the Articles of Incorporation is the person designated to receive legal notices and service of process on behalf of the corporation. If you are incorporating in a state other than where you maintain your principal office, you can designate a professional registered agent company for a fee. Once the Articles of Incorporation are filed and accepted by the Secretary of State, the corporation officially exists as a legal entity. Sample forms of Articles of Incorporation can be found in the Forms and Agreements section of AllBusiness.com, and most states also provide sample forms on the Secretary of State's website.

6. What Are Corporate Bylaws and Why Are They Important?

Corporate bylaws are like an official game plan for how a corporation is to be run and operated. Bylaws set forth the rules and procedures that govern the rights and powers of shareholders, directors, and officers. Unlike the Articles of Incorporation, bylaws are not public records and typically do not need to be filed with any governmental entity. They are an internal governance document that guides the day-to-day and long-term operations of the corporation. Banks, credit companies, and the IRS all expect a corporation to have bylaws, and adopting them signals that the corporation takes its responsibilities seriously.

Bylaws typically address a wide range of governance matters. They establish the size of the board of directors, how and when board meetings are called, how shareholder meetings are held, the duties and responsibilities of directors and officers, procedures for exercising voting rights, and procedures for the transfer of corporate stock. Bylaws also address indemnification obligations for officers and directors, which protect them from certain lawsuits and claims made in connection with their service to the corporation. Bylaws are typically adopted by the board of directors at the organizational meeting, or by written unanimous consent.

Most lawyers and incorporation services have a prepared set of template bylaws that can be modified to meet a company's specific requirements. Each state has a Business Corporation Act that governs the operation of corporations within its borders. If your bylaws do not cover a particular governance issue, the statutes within your state's Business Corporation Act will fill in the gap by default. This is why well-drafted bylaws are so important—they allow the founders and directors to customize governance arrangements rather than being subject entirely to default statutory rules that may not reflect the company's intentions.

7. What Are the Advantages of Incorporating?

The most compelling reason to incorporate is limited liability protection. A corporation is an entirely separate legal entity from its owners and shareholders, so owners and shareholders generally cannot be held personally responsible for the debts of the corporation or any lawsuits brought against it. In other words, your personal assets are insulated from the actions and obligations of the business, provided corporate formalities are properly observed. This is a fundamental protection that sole proprietorships and general partnerships cannot offer, and it is often the single most important reason entrepreneurs choose to incorporate.

Incorporating also offers significant advantages when it comes to raising capital and attracting investors. If you are trying to raise capital by selling shares in the company, you need to be incorporated. Venture capitalists and angel investors almost universally prefer investing in corporations—specifically C corporations—rather than other business structures. Additionally, a corporation can offer employees and advisors stock options as part of their compensation, which can be a powerful tool for attracting and retaining top talent. A corporation also has perpetual existence, meaning it continues to exist even if an owner leaves, dies, or sells their shares.

Beyond liability and investment considerations, incorporation can provide important credibility benefits. A business with an 'Inc.' or 'Corp.' after its name often sounds more professional and trustworthy to outside parties—customers, partners, vendors, and lenders. Incorporating also protects your business name in the state in which you do business, and can facilitate a future sale of the company. Corporations have shares that are more easily transferable than ownership interests in other entity types, which simplifies the process of adding investors, selling a stake, or eventually exiting the business through a sale or IPO.

8. What Are the Disadvantages of Incorporating?

While incorporating offers many advantages, it also comes with real costs and administrative burdens that entrepreneurs should understand before proceeding. The incorporation process itself requires filing fees with the Secretary of State, and ongoing compliance costs can include annual franchise taxes, annual report filings, and costs associated with maintaining registered agents—especially if you are incorporated in a different state than where you primarily operate. Many states, for example, require a minimum annual franchise tax of $800. These ongoing expenses can add up and are a factor to consider for early-stage businesses with limited resources.

Corporations also require significantly more paperwork and administrative formalities than other business structures. As a corporation, you are required to file Articles of Incorporation, maintain corporate bylaws, keep corporate minutes, maintain a stock ledger, hold annual meetings, and file corporate tax returns. All of this documentation must be kept current and properly maintained. Failing to observe corporate formalities can expose shareholders to personal liability through a concept known as “piercing the corporate veil,” which can undermine the very liability protection that incorporation was intended to provide.

For C corporations specifically, the issue of double taxation is a significant disadvantage. The profits of a C corporation are taxed first at the corporate level, and then again when dividends are distributed to shareholders—who must pay personal income tax on those dividends. This is in contrast to S corporations and LLCs, where income passes through to the owners and is only taxed once at the individual level. Although the Tax Cuts and Jobs Act of 2017 lowered the federal corporate tax rate to a flat 21%, the combined burden of corporate and dividend taxation can still be substantial, and entrepreneurs should consult a tax advisor to understand the full implications for their situation.

9. What Are the Key Corporate Governance Requirements After Incorporating?

Once a startup incorporates, it must follow a series of important corporate governance requirements to maintain its legal standing and preserve limited liability protections. The corporation must establish a board of directors, which is the elected governing body responsible for overseeing management, making major strategic decisions, and fulfilling fiduciary duties to shareholders. The board, in turn, appoints officers such as the CEO, CFO, and Secretary, who are responsible for the day-to-day operations of the corporation. Most states require a corporation to have at least a president or CEO, a secretary, and a CFO, though the same person can hold multiple offices.

Corporations must hold annual meetings of shareholders, the principal purpose of which is to elect the members of the board of directors. They must also hold board of directors meetings—usually at least once per year—to make strategic plans and decisions such as issuing stock, incurring debt, and declaring dividends. All such meetings must be properly noticed, conducted according to the bylaws, and documented through corporate minutes. Keeping accurate and thorough minutes of board and shareholder meetings is a legal requirement and a critical element of demonstrating that the corporation is operating as a separate legal entity.

Other ongoing compliance obligations include filing annual reports with the Secretary of State, paying franchise taxes, maintaining a registered agent, and keeping accurate records of stock issuances through a stock ledger. All contracts should be signed in the name of the corporation—such as “ABC, Inc., by Jane Smith, CEO”—not in the personal name of the owner. Corporate bank accounts must be separate from personal accounts. Mixing personal and corporate funds is one of the most common ways that shareholders inadvertently expose themselves to personal liability by allowing a court to pierce the corporate veil.

10. What Is the Difference Between Common Stock and Preferred Stock?

When a corporation is formed, it can issue different classes of stock to reflect the different rights and priorities of its various shareholders. The two most common types are common stock and preferred stock. Common stock represents the basic ownership interest in the corporation. Holders of common stock typically have the right to vote on corporate matters, to receive dividends if declared by the board, and to share in the assets of the corporation upon liquidation—after higher-priority claims have been satisfied. Founders and employees most commonly hold common stock.

Preferred stock, by contrast, gives holders various rights and preferences over common stockholders. Most professional investors, including venture capitalists, prefer to invest in preferred stock rather than common stock. Preferred stock typically offers a priority on the corporation's assets in the event of a liquidation, a priority on any dividends declared by the board, and special voting or veto rights on certain significant corporate actions. Preferred stock also often has anti-dilution protections—provisions that protect investors against the value of their investment being diluted by future stock issuances at lower prices.

Other common features of preferred stock include the right to convert to common stock, the right to force the company to repurchase the shares (known as redemption rights), and the right to elect a designated number of directors to the board. In a typical venture capital financing, investors receive convertible preferred stock, which means their shares will automatically convert to common stock upon a qualified IPO or other triggering event. This structure allows the corporation to offer a lower strike price for employee stock options while providing investors with greater downside protection through liquidation preferences and other preferential rights that common stockholders do not receive.

Conclusion on Incorporation

Incorporation is one of the most important decisions any entrepreneur will make. By creating a separate legal entity, founders gain liability protection, the ability to raise capital, and a governance structure designed to support long-term growth. Whether you choose a C corporation, an S corporation, or an LLC (which is technically not a corporation) depends on your specific business goals, tax situation, and whether you intend to seek outside investment. For most high-growth startups seeking venture capital, the C corporation remains the structure of choice. Understanding the core mechanics of incorporation, from naming your company to issuing stock to maintaining corporate formalities, positions you to build a solid legal foundation for your business from day one.

Incorporation is not a one-time event but an ongoing responsibility. Maintaining your corporation's good standing requires consistent attention to governance, compliance, and recordkeeping. Entrepreneurs should work closely with experienced legal and tax advisors to ensure that they are meeting all of their obligations and taking full advantage of the benefits that the corporate form offers. With the right structure in place and proper corporate formalities observed, your corporation can serve as a durable and flexible vehicle for building a successful, investor-ready business well into the future.

Over the past decade, compensation for artificial intelligence (AI) professionals has surged at an unprecedented pace, reshaping the talent market and redefining what employers must offer to attract and retain top-tier technical talent. As companies across nearly every sector race to integrate machine learning, automation, and generative AI into their operations, the demand for skilled AI engineers, researchers, and product leaders has vastly outstripped supply. The result is a compensation environment that is not only highly competitive, but increasingly aggressive.

What makes this shift especially striking is how rapidly it has accelerated. Even five years ago, AI roles commanded above-average compensation, but nowhere near the levels seen today. Now, seven-figure packages for senior AI experts are not only possible, they’re becoming increasingly common.

This surge is driven by a unique convergence of market forces: the explosion of generative AI capabilities, a shortage of qualified talent, escalating corporate reliance on AI strategy, and the emergence of new startup and investment ecosystems flush with capital. Together, these factors are pushing AI compensation to historic highs, with no signs of slowing down.

And of course, this article was written with the research assistance of AI.

The Talent Shortage Driving the Compensation Surge

AI is one of the few fields in which global demand massively exceeds global supply of qualified professionals. Only a small subset of software engineers possess the deep expertise required for advanced machine learning, reinforcement learning, natural language processing, and large-scale model development. Even fewer have hands-on experience with cutting-edge deep learning architectures or the ability to integrate foundation models into commercial products.

Companies are discovering that they are effectively competing for the same limited pool of elite talent. And that competition is fierce.

Here are a few key reasons AI talent is scarce:

• AI research and engineering require advanced mathematical, algorithmic, and computational training.
• Top-tier AI expertise is concentrated in a handful of universities and research labs.
• Rapid technological change means experience becomes outdated quickly, raising the premium on continuous learners.
• Many AI professionals gravitate toward startups or independent research labs rather than traditional corporate roles.
• Immigration constraints limit access to global AI expertise in certain regions, especially the U.S.

This scarcity alone would elevate compensation, but the explosive commercial potential of AI has supercharged it.

Generative AI Has Reshaped the Compensation Landscape

The release of large-scale generative AI models has catalyzed a gold rush. Companies of all sizes now recognize that AI will determine competitive advantage in the coming decade. As firms shift from “AI experiments” to “AI strategy,” the urgency to hire expert talent has become acute.

Generative AI has created entirely new job categories, including:

• Large Language Model (LLM) Engineers
  
• Prompt Engineers and Prompt Architects
• AI Product Managers and AI Strategy Leads
• Applied AI Scientists
• Multimodal AI Specialists
• AI Safety and Alignment Researchers
• Model Evaluation and Red Teaming Experts
• AI Video Specialists

In many cases, these roles did not exist 18 months ago. Now, they are some of the highest-paying jobs in the technology sector.

Salaries Are Reaching Historic Highs

Compensation varies widely based on geography, seniority, company size, and specialization. But one trend is clear: AI salaries are increasing across the board, often dramatically.

Typical U.S. salary ranges for AI roles:

• Machine Learning Engineer: $180,000–$350,000+ total compensation
  
• Senior AI Scientist: $300,000–$600,000+
  
• LLM Engineer or Generative AI Engineer: $400,000–$900,000+
  
• AI Product Director: $350,000–$700,000+
  
• Head of AI / VP of AI: $700,000–$2,000,000+
  
• Distinguished AI Researcher at top tech firms: Often over $1 million, with equity packages that can reach multi-millions

And these figures do not account for extreme outliers—most notably the seven-figure offers made by OpenAI, Anthropic, Google DeepMind, Meta, and specialized hedge funds or trading firms.

Compensation for AI talent is highest in the Silicon Valley/San Francisco area, followed by New York and then Seattle.

Startups Are Offering Massive Equity Packages

AI startup funding is booming. Investors are pouring billions into companies developing foundation models, AI infrastructure, and vertical AI applications. With capital plentiful and competition intense, startups are offering generous equity to lure experienced AI hires away from Big Tech.

What startups are offering:

• Sign-on equity that may exceed 0.5–2% of the company for early senior hires
  
• Better vesting schedules (e.g., no cliff vesting, shorter vest cycles)
• Performance-based equity refreshers
• Access to secondary liquidity opportunities as they become available
• Hybrid cash/equity compensation at levels competitive with major tech companies

For highly specialized engineers, particularly those with LLM or multimodal model experience, equity stakes can be extremely significant.

The big players are stepping up as well. In late 2025, OpenAI’s average stock compensation reportedly reached $1.5 million per employee for its 4000 person workforce.

Non-Tech Companies Are Entering the Bidding War

AI is no longer limited to technology firms. Industries such as healthcare, finance, manufacturing, retail, defense, and media all have aggressive AI build-out strategies. This has expanded the competition for talent beyond Silicon Valley, creating upward pressure on compensation.

For example:

• Financial institutions are recruiting AI specialists for algorithmic trading and risk modeling.
  
• Healthcare companies need AI leaders for diagnostics, drug discovery, and patient management systems.
• Traditional industrial firms are hiring machine learning engineers to optimize robotics, forecasting, and supply chain operations.

These companies often have substantial cash reserves, enabling them to offer compelling salary packages more commonly associated with Big Tech.

Remote Work Has Globalized the AI Salary Market

Remote-first hiring has created a global bidding environment. Companies that once paid lower regional salaries are now forced to match global standards—especially when competing against deep-pocketed AI enterprises and venture-backed startups.

As a result:

• Compensation is rising across Europe, Latin America, India, and Southeast Asia.
  
• Remote AI contractors in lower-cost countries are sometimes commanding Silicon Valley–level pay.
• Employers can no longer rely on geographic arbitrage to meaningfully cut costs.

This globalization has further driven compensation upward.

Retention Packages Are Becoming More Aggressive

As poaching becomes rampant, companies are creating elaborate retention structures, including:

• Annual equity refresh grants
  
• Retention bonuses tied to multi-year milestones
• Stay bonuses during M&A or restructuring
• Accelerated equity vesting for high performers

Companies recognize that replacing a senior AI engineer or researcher is extremely costly, and often impossible in the short term.

What This Means for Employers

Companies should expect:

• Longer search timelines for AI roles
  
• Substantially higher compensation budgets
• The need for flexible, customized packages
• Aggressive competition from startups and Big Tech
• Ongoing retention challenges

Organizations that fail to invest in AI talent will struggle to compete strategically, technologically, and operationally.

What This Means for AI Professionals

For employees, the moment is historic. AI expertise, especially in LLMs, applied machine learning, infrastructure, safety, and AI product design, is one of the most valuable skill sets in the global economy.

Professionals should:

• Negotiate assertively
  
• Evaluate total comp (salary, bonus, equity, benefits)
• Secure severance and change-in-control protections
• Understand equity liquidity options
• Consider both Big Tech stability and startup upside

Those with the right skills can expect strong compensation growth for the foreseeable future.

How AI Employees Can Negotiate High-Value Compensation Packages

This section outlines the most important strategies, components, and negotiation techniques AI employees can use to maximize compensation and secure long-term professional protection.

1. Evaluate Total Compensation, Not Just Salary

A common mistake candidates make is focusing on base salary alone. In AI roles—especially at high-growth startups—base salary may not be the most important part of the package.

AI employees should evaluate:

• Base salary
• Annual bonuses or performance incentives
• Equity grants
• Retention or milestone bonuses
• Equity refresh cycles
• Severance protections
• Change-in-control payments

Total compensation packages in AI can vary by hundreds of thousands of dollars depending on equity and incentives, making it essential to evaluate the full structure.

2. Negotiate Equity—It’s Often the Most Valuable Component

AI startups and AI-first public companies rely heavily on equity to attract top-tier talent. But equity terms are nuanced and highly negotiable.

Key equity terms you should negotiate:

• Size of the grant (expressed as % ownership or # of shares)
• Equity type (options vs. RSUs)
• Vesting schedule (you can ask for shorter vesting schedules and no cliff vesting)
• Acceleration triggers (single- vs. double-trigger vesting)
• Windows to exercise options after leaving the company (traditionally 90 days but you can request one year)
• Ability to participate in secondary sales

A single percentage point of equity at a strong AI startup can be worth millions of dollars in a successful exit. Do not underestimate your ability to negotiate this component.

Pro tip: Ask for your equity in terms of percentage ownership, not number of shares. This forces companies to reveal the fully diluted share count.

3. Push for Clear and Achievable Bonus Structures

AI work is often tied to quantifiable outcomes: model accuracy, latency improvements, deployment milestones, or product releases. This makes it easier to negotiate objective bonus structures, rather than subjective or discretionary ones.

You can negotiate:

• A signing bonus
• A target bonus (often 20–50% of salary for senior roles)
• A guaranteed minimum first-year bonus
• Objective, measurable performance metrics
• A clear timeline for bonus evaluation
• Eligibility for multi-year performance awards

4. Benefits and Perks

Beyond salary and bonuses, benefits protect well-being and support work-life integration—particularly important for senior leaders.

Benefits can include:

• Comprehensive health, dental, vision, life, and disability insurance
• Retirement plans such as 401(k) with employer match and pension enhancements.
• Vacation, sick leave, and paid time off accruals with carry-over provisions on termination.
• Relocation assistance, travel allowances, and technology stipends.
• Parental leave

5. Secure Strong Severance and Termination Protections

Given the velocity of change in AI—funding cycles, pivots, acquisitions, and leadership turnover, severance protections are essential. They are highly negotiable for AI professionals.

Negotiate for:

• 3–12 months of salary severance pay if fired without cause, together with 3-12 months of target bonus
• Continuation of benefits or COBRA during the severance period
• Accelerated vesting of equity upon termination without cause
• Severance triggers if your role changes materially
• Limit the “cause” definition– you want to avoid broad definitions of being terminated for “cause” to avoid losing out on severance
• Mutual releases of liability and mutual non-disparagement clauses in the event of termination without cause

Many AI companies do not offer severance by default, but will add it if asked by a senior or highly valuable hire.

6. Leverage Competing Offers Strategically

AI employees who interview with multiple companies often have dramatically better outcomes. Even one additional offer can significantly increase your negotiation leverage.

Tips for handling competing offers:

• Never bluff—only leverage real offers.
  
• Share general ranges, not exact numbers (“my other offer is in the ~$500K range”).
• Emphasize fit and culture, not financial extraction.
• Allow employers to “revise” offers rather than demanding increases.

Companies expect AI talent to be in high demand. You should expect and encourage competition.

7. Protect Yourself from Liability

AI work often includes high-stakes systems, regulatory exposure, or sensitive data. Professionals should negotiate strong protections.

You can ask for:

• Company-backed D&O insurance (for senior roles)
  
• Indemnification for work done within the scope of your role
• Reasonable limits on personal liability

AI professionals involved in model development, compliance, or safety can insist on explicit liability protection.

8. Remote Work and Flexible Arrangements Are Negotiable

AI talent is global, and many companies are remote-first. If location flexibility matters to you, negotiate it early.

You can request:

• Fully remote work
  
• Hybrid flexibility (e.g., two days in the office each week)
• Home office stipends
• Relocation packages, if required
• Adjustments for time-zone differences

Given how scarce AI talent is, many companies will accommodate flexibility for the right candidate.

9. Consider Other Important Issues

Here are some additional important issues to consider when negotiating an employment contract or offer letter:

• Avoid any non-compete clauses that would hinder you from finding a new AI job. In some states like California, those are for the most part unenforceable anyway
• If there is a dispute with your employer, you will likely want the matter to be resolved by confidential binding arbitration to avoid lengthy and costly litigation
• Make sure you are not taking any documents or confidential information from your old employer– this can lead to expensive and embarrassing litigation
• Get any oral promises made to you in writing as part of your employment agreement or offer letter
• Carefully review the terms of any rights of repurchase on equity, right of first refusal, and company buy-back terms, which could limit the value of your equity

10. Work with an Attorney or Advisor for Complex Packages

AI compensation packages, especially those involving equity, are increasingly complex. Understanding tax implications, vesting schedules, and contract terms often requires professional review.

An attorney or advisor can help you:

• Interpret equity and vesting terms
  
• Understand company cap tables
• Identify red flags in employment contracts
• Strengthen negotiation positions
• Include protective contract terms

A modest legal investment can protect hundreds of thousands—and sometimes millions—of dollars in future compensation. And sometimes you can negotiate for the company to reimburse your reasonable legal fees incurred.

Conclusion on Compensation for AI Employees

AI employees today are in a uniquely powerful negotiating position. Compensation is skyrocketing. Companies are racing to hire scarce talent, and the strategic importance of AI expertise has never been higher. By approaching negotiations with clarity, confidence, and a deep understanding of total compensation, AI professionals can secure packages that reflect both their current value and their long-term contribution.

In an era defined by rapid innovation and intense competition, negotiating well is not just a financial decision, it’s a strategic career move.

Related Articles:

• 16 Key Issues in Negotiating an Employment Severance Package
• 14 Key Issues in Negotiating Employment Agreements
• Key Issues with Confidentiality and Invention Assignment Agreements with Employees
• How Employee Stock Options Work in Startup Companies

Eurail, which sells passes, says data being ‘offered for sale on dark web’ after December breach affecting 300,000 people

Holidaymakers across Europe are facing the stress and expense of getting new passports after their personal data was posted on the dark web after a hack of the Interrail company Eurail.

Personal data, including passport numbers, names, phone numbers, email and home addresses and dates of birth of more than 300,000 European travellers was accessed in December. But this week Eurail revealed to customers that “data copied during the security incident has been offered for sale on the dark web and a sample dataset has been published on Telegram”.

Volunteers’ data has enabled medical breakthroughs, but there are questions over how that data is protected

With the revelation that the confidential health records of half a million British volunteers have been put up for sale on a Chinese website, we take a look at what the UK Biobank project has achieved – and why concerns have been raised.

Demographic also overrepresented when police officers use force such as handcuffs, firearms or Tasers, says children’s commissioner

Black children across England and Wales are almost eight times more likely to be strip-searched by police than their white counterparts, a report has disclosed.

Rachel de Souza, the children’s commissioner for England, said Black children are also overrepresented when officers use force and were more likely to have their “size, gender or build” cited as justification.

Alarm caused by posts of Alex Carp, tech firm’s CEO, championing US military dominance and of AI weapons

The US spy tech company Palantir published a manifesto extolling the benefits of American power and implying some cultures are inferior to others – in what MPs have called “a parody of a RoboCop film” and “the ramblings of a supervillain”.

“Some cultures have produced vital advances; others remain dysfunctional and regressive,” wrote Palantir in a 22-point post on X over the weekend, which also called for an end to the “postwar neutering” of Germany and Japan.

Believe it or not, Ontario’s Endangered Species Act (ESA) was passed with all-party support back in 2007. Subsequently, of course, it was undermined through numerous exemptions and approvals for harmful activities, and now, through Bill 5, the Government of Ontario is tossing it aside completely. It is being replaced by the Species Conservation Act, 2025, (SCA) which is in no way its equal. With a view to eliminating barriers to development, it is claimed the new law will “help speed up project timelines and provide greater certainty for proponents.”

Devastating Changes

Under the SCA, no migratory birds, aquatic species or species of special concern will be provincially listed. The rationale for removing protections for migratory birds and aquatic species is that they already receive federal protection under the Species at Risk Act (SARA). In the case of special concern species, the provincial government is not listing them because they were not subject to “prohibitions under the ESA”. The provincial government is thus abandoning responsibility for 106 out of the 270 or so species currently deemed to be at risk in Ontario.

National Accord

In 1996, federal, provincial and territorial ministers responsible for wildlife committed to a national accord to protect species at risk by agreeing to “establish complementary legislation and programs that provide for effective protection of species at risk throughout Canada.” Canada and Ontario went a step further in 2011 by developing an Agreement on Species at Risk that commits to coordination and cooperation on preventing species from becoming at risk, as well as protecting and recovery identified species.

The Government of Ontario has abandoned these commitments. Species do not recognize arbitrary political boundaries, and cooperative federalism is absolutely necessary to conserve species at risk, especially amid a biodiversity crisis.

Limitations of SARA

The SARA is not equivalent to the ESA and to date, the federal government has been reluctant to exercise its power under the act on non-federal lands. The Government of Ontario has given no indication that the federal government was engaged on the draft SCA or agreed to step in and provide protections for the migratory birds and aquatic species that have lost provincial protections. On the contrary, Minister McCarthy along with the Alberta Environment Minister sent a letter to their federal counterpart in June, 2025 that requested the federal government amend SARA “to respect the constitutional jurisdiction of the provinces”, along with request to weaken other environmental regulations.

Further evidence that SARA is not fit to purpose to make up for the once gold standard provincial ESA, is that the backlog of species needing reassessment by Environment and Climate Change Canada will grow to 574 by the end of 2030. Additionally, as of 2022, the Auditor General of Canada found that 10% of federally listed species did not have recovery strategies or management plans in place as required by the act. Furthermore, of the 409 recovery strategies prepared by 2022, 20% did not identify the species’ critical habitat, which is necessary for protections under SARA.

Despite the Government of Ontario’s claims that the protections under the ESA for migratory birds and aquatic species were duplicative with federal protections, it is clear that SARA and the federal government are not equipped to provide equivalent protections.

Call to Action

Extinction threatens one million of approximately 8 million plants and animals worldwide. Responding effectively requires cooperation across all levels of government, as previously agreed to under the national accord and Canada-Ontario agreement.

Ontario’s weakening of protections for species at risk threatens our long-term well-being. Join us in urging the Government of Ontario to repeal Bill 5.