Jeff Bezos’s aerospace company Blue Origin has rolled out a revised employee stock incentive program aimed at addressing worker complaints and better competing with rival SpaceX, according to a Financial Times report published Wednesday that cited three sources with knowledge of the situation.
The initiative to enhance employee compensation comes as competition heats up between Blue Origin and Elon Musk’s SpaceX, which recently submitted paperwork for a public stock offering with an estimated value of approximately $1.75 trillion.
Company leadership presented the updated incentive structure to workers last week following widespread employee frustration with the previous program, particularly as stock options from the original plan began expiring without any financial benefit to workers, according to the newspaper’s reporting.
Reuters was unable to independently confirm the details of the report.
Blue Origin has not yet responded to requests for comment from Reuters.
Multiple current and former Blue Origin workers expressed frustration to the Financial Times that the company was letting options from the initial program lapse after establishing requirements that would only trigger payouts if the company went public or was sold.
The updated program aims to resolve some of these concerns and establishes a new strike price of $9.50 per share for the stock options, according to the Financial Times report.
Under the new structure, the stock options will be settled in cash rather than providing employees with actual company ownership, the report indicated.
The revised program also expands the types of “liquidity events” that would activate payouts to include external investment rounds or tender offers, the Financial Times reported, referencing internal documents they reviewed.
Blue Origin CEO Dave Limp informed employees that the company has no current intentions to pursue a public offering, according to the Financial Times.
