Understanding the IPO Windfall for SpaceX Staff
SpaceX's record-setting IPO is creating a financial windfall for thousands of the company's current and former employees who received stock as part of their compensation. Workers who hold stock in non-public companies are subject to restrictions that can keep them from selling those shares under most circumstances before an IPO occurs. Once the stock goes public, it starts a timeline under which they can begin to sell some of those shares as so-called lock-up periods gradually allow employees to sell shares in tranches that expand over time.
The ranks of SpaceX workers who will see an influx of wealth as a result of the IPO include not only those who design the rockets and satellites that have made the company famous, but also baristas, janitors and other workers who helped keep the company running. This broad distribution reflects how equity grants were extended across various positions during the company's growth phases.
Employee Reactions and Future Plans
FOX Business spoke with workers outside of SpaceX's facility in Hawthorne, California, about their plans for the monumental IPO turning into a reality. One SpaceX employee, who said that he's a process planner, said that he wants to try to stay healthy and that the IPO is a beautiful thing. Another SpaceX employee said that he's been a millionaire for a while, but it's always nice to have money. It will be great when the lock-up period is out, of course, and they can actually sell some of it and that will feel a little more into the wealth, but it's a great day.
Juan Hernandez, who previously worked as a welder at SpaceX, told CBS News that when he was first hired by the company in 2015 he was offered $10,000 in stock. He explained that it wasn't a big deal to him at the time. Hernandez, who now works at Blue Origin after a 10-year stint at SpaceX, told CBS that he has around 6,500 SpaceX shares that would represent a nearly $880,000 windfall based on the IPO listing price of $135 a share. He added that giving employees stock options encourages them to perform a lot better because it's their company as well. He went on to tell the outlet that he wants to maintain a strong work ethic after the IPO and plans to keep working, and expressed gratitude to Musk for making all these lives much better and meaningful for their families as well.
I don't want to just die with a pile of money in the bank. Every year the shares have been going up so radically it keeps messing up my life plans.
Notable Cases of Long-Term Equity Holders
The Wall Street Journal reported that J. André Lavoie, a 63-year-old former SpaceX engineer who moved to Italy five years ago, has shares valued at over $28 million based on the IPO price. Lavoie plans to use the funds to renovate a hotel he purchased and is considering helping others in the community transition from heating their homes with burning wood to cleaner heating sources. The rise in the value of the shares has caused him to reconsider his plans.
The Journal also spoke with 27-year-old Maryellen Musselman, who joined SpaceX in 2022 and worked on a ship used in retrieving rocket parts from the company's launches that splashed down off the coast of Florida. Musselman used 10% of her pay to purchase additional shares during the two years she worked at SpaceX and said that while she's unsure of how quickly she'll look to sell, saying it'll likely be an 11th-hour decision. She wants to use the money to help her start a ship repair business in Chesapeake, Virginia.
Elon always said that 'Your salary is one thing, but it's the equity that's gonna be worth something.' And we are all like, 'Yeah, okay someday.' That day is here. It's great.
Broader Implications for Company Culture
Tom Mueller, who was hired as SpaceX's first employee in 2002 and led projects including the Merlin Engine that powers the Falcon 9 rocket, the Raptor Engine that powers Starship and other key propulsion systems, told FOX Business' The Claman Countdown on Thursday that the IPO would be life-changing for employees. The distribution of equity has historically been positioned as a core part of compensation, aligning individual contributions with long-term company outcomes. This approach has now materialized into tangible results for a wide range of participants following the IPO.
