Blue Origin Adds Liquidity Feature to New Stock Option Plan That Includes Non-Compete Forfeiture Clause

Blue Origin introduced a new employee stock option plan in May 2026 that includes a non-compete clause requiring employees to forfeit all options if they join a competitor within 18 months of departure. The clause does not apply to workers in California and Washington. The company's workforce is concentrated in Florida, Texas, and Alabama, where the restriction remains in force.

Blue Origin employed around 12,600 people as of February 2025, including roughly 4,000 in Florida and 1,600 in Alabama. Under the plan, options are priced at $9.50 per share and vest up to 25 percent in the first year followed by quarterly installments.

Employees never own company shares; vested options exercised during a liquidity event are immediately repurchased by Blue Origin at fair market value.

If no liquidity event occurs, unexercised options expire 18 months after an employee leaves. Blue Origin first offered stock options in 2016. Earlier grants expired after 10 years and could be exercised only upon a sale or initial public offering.

The new plan permits exercises during certain external funding rounds, though Blue Origin retains sole discretion to determine whether any round qualifies as a liquidity event. SpaceX completed an $86 billion IPO last month. Two former SpaceX employees who joined Blue Origin said their prior option plans contained no non-compete provisions.

Attorney Mary Russell described the forfeiture clause as very rare among U.S. tech startups. Last week Blue Origin announced plans to raise $10 billion in external funding at a $130 billion valuation.