The new plan was detailed in a Financial Times report on Wednesday, citing three individuals familiar with the situation. Blue Origin 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, and both current and former employees expressed frustration that the company allowed options under the original scheme to lapse, with payout criteria contingent solely on an IPO or sale of the firm.
The new plan establishes a fresh strike price for the options at $9.50 a share. The stock options are cash-settled, meaning they will result in a payout rather than granting employees an ownership stake. The scheme expands the list of 'liquidity events' that would trigger a payout, now encompassing external funding rounds or tender offers. Dave Limp, Blue Origin’s chief executive, reportedly informed staff that the group has no immediate plans for an IPO.
In related news, SpaceX recently filed for a US initial public offering targeting a valuation of approximately $1.75 trillion, according to the Financial Times. Reuters was unable to immediately verify the report, and Blue Origin did not respond to a request for comment.