Jeff Bezos' space venture Blue Origin has reportedly introduced a new stock incentive plan for its employees, aiming to address growing staff frustration and make its benefits more competitive with rival SpaceX. The move follows reports of 'broken morale' within the company, especially as SpaceX employees have seen significant financial gains ahead of its anticipated initial public offering (IPO).
Details of the New Plan
According to a report by The Financial Times, the changes come after widespread anger over a previous plan where employee stock options began to expire this year without any payout. Under the old rules, staff could only benefit from their options if the company went public or was sold. The new scheme expands the list of 'liquidity events' that trigger a payout to include external funding rounds and tender offers, where employees can sell shares back to the company or to Bezos himself.
CEO Dave Limp reportedly informed staff that while an IPO or sale is unlikely in the near future, the company is committed to creating opportunities for employees to convert their vested options into 'realised value'.
Blue Origin vs SpaceX: The Space Race Heats Up
Blue Origin's push to motivate its workforce comes at a critical time. The company is racing to meet launch targets for its massive New Glenn rocket and competing against SpaceX to build a lunar lander for NASA's Artemis program. It also aims to reach positive profit margins by 2029. Meanwhile, SpaceX is preparing for a high-profile IPO in June with a target valuation of $1.75 trillion. Unlike Blue Origin, SpaceX has frequently allowed its staff to sell shares at a profit during various funding rounds. One former employee noted that morale at Blue Origin dropped as workers watched their peers at SpaceX buy second homes.
Jeff Bezos, the sole shareholder and primary funder of Blue Origin, has historically been cautious about traditional stock schemes. He reportedly worried that such plans wouldn't improve performance and was hesitant to give up control of the venture. Currently, Bezos funds the company largely by selling his shares in Amazon. Blue Origin has won major government contracts from the Pentagon and NASA.
