After falling far behind the rest of industry, Blue Origin creates new stock option plan
"It's a big fat middle finger for those that thought they had something."
TL;DR
- Blue Origin has announced a new stock option plan for employees, following criticism of its previous plan.
- The original Blue Origin Equity Incentive Plan, launched in 2016, had options that expired after 10 years and could only be exercised during a sale or IPO, neither of which had happened.
- This expiration and lack of liquidity made the options seem like "Monopoly money" to employees, especially when compared to SpaceX's successful employee stock option program.
- The new plan, announced by CEO Dave Limp, aims to provide employees with opportunities for liquidity events to convert vested stock options into realized value.
- The competitive aerospace industry makes retaining talent crucial, and compensation, including stock options, plays a significant role.
- Blue Origin faces strong competition from companies like SpaceX, which is preparing for a potentially massive IPO.
- It remains unclear what will happen to the options granted under the original equity plan.