Blue Origin has introduced a revised stock incentive plan aimed at addressing employee dissatisfaction and enhancing its competitiveness against rival SpaceX. The space company, founded by Jeff Bezos, recently informed staff of the new equity scheme following widespread frustration over the previous plan, which had options expiring this year without delivering any payouts to employees.

Under the original arrangement, employee stock options would only vest if the company underwent an initial public offering (IPO) or was sold outright. This condition led to significant discontent among current and former staff, including senior executives, who expressed anger that options would lapse without financial benefit. Some employees lamented the contrast with SpaceX, which has completed multiple funding rounds and allowed personnel to realize substantial gains by selling shares. A former Blue Origin employee remarked on the decline in morale, referencing SpaceX staff reportedly acquiring second homes.

The revamped incentive plan expands the definition of "liquidity events" to include external funding rounds and tender offers, creating more potential opportunities for employees to convert vested options into cash. According to internal communications obtained by sources familiar with the matter, the new plan sets a strike price of $9.50 per share, although the company’s overall valuation remains undisclosed. Blue Origin has stated it is focused on designing liquidity mechanisms that allow employees to realize value from their stock options.

Dave Limp, Blue Origin’s chief executive, reportedly told employees that the company has no current plans for an IPO and is unlikely to consider a sale. Instead, Limp outlined the possibility of tender offers funded internally by Bezos or Blue Origin itself as a means to provide employee payouts. This approach reflects Bezos’s preference to avoid external investment and maintain control, in contrast to the more conventional equity compensation structures employed by other space ventures. A former executive indicated that Bezos viewed traditional stock plans as ineffective for recruitment, retention, or performance enhancement.

The stock options at Blue Origin are cash-settled, meaning employees receive payment rather than ownership stakes. Internal documents reveal that the company aims to achieve positive gross profit margins by 2029, signaling a long-term focus on financial sustainability.

This shift in incentives coincides with Blue Origin’s ambitious launch schedule for 2024, targeting between eight and twelve flights of its New Glenn heavy-lift rocket, a program central to the company’s competitive positioning. The New Glenn rocket is also a contender in NASA’s Artemis program, seeking to develop a lunar lander alongside SpaceX.

Blue Origin has declined to comment publicly on the changes. Meanwhile, SpaceX is preparing for a large-scale IPO expected next month, with a projected valuation of approximately $1.75 trillion, underscoring the intense competition in the commercial space sector.