Jeff Bezos's space company, Blue Origin, has reportedly introduced a new employee stock plan in a bid to quell widespread staff unrest and enhance its competitive edge against rival SpaceX. The move was detailed in a Financial Times report on Wednesday, which cited three individuals familiar with the situation.
Background of the Initiative
The initiative comes amid an intensifying rivalry between Blue Origin and Elon Musk's SpaceX, which recently filed for a US initial public offering, targeting a valuation of approximately $1.75 trillion. The rocket manufacturer briefed its workforce last week on the revamped incentive scheme, following significant anger over its predecessor. Under the previous arrangement, options began to expire without any payout, the FT noted. Reuters was unable to immediately verify the report, and Blue Origin did not respond to a request for comment from the news agency.
Employee Frustrations
Both current and former employees expressed their frustration to the FT, stating that the company allowed options under the original scheme to lapse, having set payout criteria contingent solely on an initial public offering or a sale of the firm. The new plan aims to address these grievances by establishing a fresh strike price for the options at $9.50 a share, the FT reported. These stock options are cash-settled, meaning they will result in a payout rather than granting employees an ownership stake, the report clarified.
Key Changes in the New Plan
Crucially, the scheme expands the list of "liquidity events" that would trigger a payout, now encompassing external funding rounds or tender offers, according to documents seen by the FT. However, Dave Limp, Blue Origin’s chief executive, reportedly informed staff that the group has no immediate plans for an IPO.
