Jeff Bezos' Blue Origin faces employee backlash over non-compete clause
Blue Origin has introduced a new stock incentive plan that includes an 18-month non-compete clause, causing frustration among employees. The policy forces workers to choose between forfeiting earned equity or remaining out of the competitive job market for over a year.
Why it matters
The use of non-compete clauses to gatekeep equity is controversial and highlights the tension between talent retention and labor mobility in the private space sector.
Following SpaceX's blockbuster IPO, several employees at Elon Musk's space company turned into millionaires overnight. This reportedly hit hard the staff working at rival Blue Origin, where they were said to have ‘broken morale’ as they’re sitting on effectively worthless stock options. To stem the frustration and stay competitive with SpaceX, Jeff Bezos' space venture reportedly rolled out a new stock incentive plan for its employees. Now a new report claims that there’s a catch: the plan comes bundled with an unusual 18-month non-compete clause, and it may not be sitting well with everyone.According to a copy of the agreement seen by Business Insider, any employee who leaves Blue Origin and joins a direct competitor within 18 months will immediately forfeit 100% of their accumulated stock option – leaving many feeling trapped.
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