Jeff Bezos’ Blue Origin has reportedly introduced a new equity scheme for its employees that includes an unusual non-compete clause.
The clause does not apply to employees in California and Washington due to strict laws against non-competes. However, it still impacts a significant portion of the company’s workforce, primarily based in Florida, Texas, and Alabama.
Two former SpaceX employees who later joined Blue Origin told Business Insider that their SpaceX stock option agreements did not contain non-compete clauses.
Blue Origin did not immediately respond to Benzinga’s request for comments.
Blue Origin Employees Disappointed
This non-compete clause, which is not common in fast-growing private startups, has raised eyebrows among employment attorneys and wealth managers. It also presents a dilemma for Blue Origin employees, as they risk losing all their gains if they decide to leave for a competitor.
Bezos Takes on Musk
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