Thousands of Ordinary SpaceX Employees Suddenly Wealthy, Here's the Driver

A planned IPO for SpaceX will not only swell the coffers of its boss Elon Musk but also enrich thousands of current and former employees, including those working at launch sites. Around 4,400 employees and ex-staff could become millionaires as a result. Of that number, 400 employees will earn US$100 million or more. “This shows the extraordinary wealth being created,” explained Andrew Benson, founder and chief executive of Hill.com, as quoted by the New York Times. This is happening because employees receive compensation in the form of company shares. One example is Gavin Petit (42), who worked as a launch supervisory engineer. Working since 2012, he received thousands of shares in addition to a salary of US$80,000, valued at US$13.80 per share. He chose to receive bonuses in the form of shares, which was actually very risky because SpaceX rockets sometimes failed and it was unclear whether his job would remain secure. This meant Petit also had to work at SpaceX for five years or more until his shares vested and were gradually acquired. He sold shares several times during liquidity events held every two years. These events allowed the sale of private employee shares to other buyers. From the proceeds of the sale, Petit was able to pay off his house in Denver. Even though he left SpaceX in 2023, he still holds more than 50,000 shares. Meanwhile, the SpaceX IPO will make Elon Musk even richer. He is set to become the world’s first trillionaire, far outpacing the rest of the world’s wealthiest people. Other groups set to benefit from the IPO include Musk’s friends, Silicon Valley venture capitalists, private investment firms, and other parties who invested in SpaceX. They will likely earn billions of dollars.