Blue Origin, the space company founded by Amazon (AMZN) creator Jeff Bezos, is changing its stock option plan in an effort to lift the spirits of employees and better compete with Elon Musk’s rocket firm SpaceX. The move comes as staff express discontent and anger over the previous option scheme, which offered payouts only if Blue Origin went public or was sold. It also highlights the pressure on Blue Origin to match the incentives offered by SpaceX, which is planning a massive public debut this year that could further reward its workers.
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Trade AMZN with leverageBlue Origin Overhauls Stock Options Amid Employee Frustration
Blue Origin’s new plan will expand the ways employees can turn their stock options into cash. Notably, staff at the rocket company had complained that the old scheme was too restrictive. They were frustrated that they would get nothing from their shares unless the company went public or was sold. This means many employees will have very little to show for years of work, especially since an initial public offering (IPO) or sale is not expected soon.
To address the widespread discontent, Blue Origin said that stock options can now be paid out during outside funding rounds or company-led buyouts, offering two extra ways to receive cash. The space firm also set a new strike price of $9.50 per share, giving staff a better chance to earn money from their options without waiting for a major event. The move shows the company’s efforts to retain talent and match the staff incentives provided by SpaceX.
Some employees at Blue Origin noted that SpaceX offered better incentives for their workers, people familiar with the matter said. Commenting on the issue, a former Blue Origin staff member said: “We all had a strong passion for space flight, but morale slumped when our friends at SpaceX started to buy their second homes.”
Blue Origin Competes with SpaceX Over Incentives and Contracts
The changes to Blue Origin’s stock options come as the firm is racing to complete launches of its New Glenn Rocket while competing with SpaceX for space contracts like NASA’s Artemis lunar lander. The firm is now facing major technical issues after its New Glenn Rocket was grounded following a failed satellite launch on its first flight. Meanwhile, SpaceX continues to successfully launch new satellites and has even let workers sell some of their shares as it gets ready for a massive $1.75 trillion IPO.
These setbacks, combined with SpaceX’s successes, left Blue Origin employees frustrated. After years of limited payout options, many were upset that they could not benefit financially while their peers at SpaceX were making money from various funding rounds. In response, CEO Dave Limp said that, although the company has no immediate plans for an IPO or sale, employees could still receive payouts through tender offers funded by Blue Origin or Bezos himself.
What Day Will SpaceX Go Public?
SpaceX is set to become the largest IPO in history once it goes public this year. The private company is estimated to reach a valuation of $1.75 trillion or even $2 trillion. Recent reports also suggest that SpaceX may be targeting a June listing, with plans to raise about $75 billion in the IPO. Other major companies set to publicly debut in 2026 include top AI rivals such as OpenAI and Anthropic.
