Peter Sellis @PeterSellis - Twitter Profile

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3 months ago

Good math, but not all quite there: First, SpaceX pays fairly average, but for more than a decade they have offered regular (~bi-annual) liquidity to employees. To live comfortably (especially to have a family) in LA County, most employees would have sold a little bit here and there, if not a lot (e.g., if they were the sole earner in a household). Second, critically, because there is no double trigger (in order to facilitate the liquidity), most people default to "sell-to-cover" — i.e., ~40-50% of their holdings are immediately sold to cover the taxes on vest. Remember these vests are W-2 events. In order to not do this, the employee would need to come up with significant cash (because the taxes are paid against the price at vest, not the price at grant) — especially later on. However, two things make SpaceX particularly awesome IMO: 1. They gave employees the option to choose stock or options along the way. Someone who took options and paid the taxes with cash would have done very well. 2. They gave stock to everyone. There are a bunch of highly skilled workers that we on X never think of, like Tube Benders, Orbital Tube Welders, Cleanroom Technicians, etc. that are going to make significant fortunes. Maybe it's overly quixotic, but this last point is underrated part of @elonmusk attacking physical problems, not just software ones, with 100x thinking: a bunch of people in the types of jobs America needs and romanticizes (for good reason) will be rewarded with the kind of wealth that really would not be possible at any other company they would have chosen. An incredibly positive story that, if you can't see it in that light, you should look inward.

Andrew Benson

@AndrewBenson

3 months ago

SpaceX millionaires 4,000 x $1mil , 400 x $100 mil Every employee who joined before the first succesful launch made (unless they sold early) more than $100 million. SpaceX lists June 12 at ~$1.75T. Work backward from the cap table. At $1.75T, clearing $100M takes ~0.0057% of the company. - 2002–2008, first ~500 in: joined at a ~$50M company. Held to $1.75T = a 17,000x. The core of the club — maybe 150–250 left holding - September 2008, SpaceX has first successful launch - 2010–2016: joined at $1B–$10B. Needs a senior grant — directors, principal engineers, early Starlink. ~100–200 - C-suite + board: Shotwell, Johnsen past $1B. A layer of SVPs below them clears $100M on equity, not salary. ~20–40 - Post-2016: joined at $20B–$350B. To hit $100M you'd have needed ~0.4% of the company. Impossible for an employee. This is the millionaire tier — almost none reach $100M The tally: ~400–500 at $100M+ A few dozen above $500M A handful of billionaires past Musk Same building. Same mission. Two orders of magnitude apart — set entirely by what year you walked in. Early isn't a strategy. It's a date stamp.

AndrewBenson's tweet photo. SpaceX millionaires 4,000 x $1mil , 400 x $100 mil

Every employee who joined before the first succesful launch made (unless they sold early) more than $100 million.

SpaceX lists June 12 at ~$1.75T.

Work backward from the cap table. At $1.75T, clearing $100M takes ~0.0057% of the company.

- 2002–2008, first ~500 in: joined at a ~$50M company. Held to $1.75T = a 17,000x. The core of the club — maybe 150–250 left holding

- September 2008, SpaceX has first successful launch

- 2010–2016: joined at $1B–$10B. Needs a senior grant — directors, principal engineers, early Starlink. ~100–200

- C-suite + board: Shotwell, Johnsen past $1B. A layer of SVPs below them clears $100M on equity, not salary. ~20–40

- Post-2016: joined at $20B–$350B. To hit $100M you'd have needed ~0.4% of the company. Impossible for an employee. This is the millionaire tier — almost none reach $100M

The tally:
~400–500 at $100M+
A few dozen above $500M
A handful of billionaires past Musk

Same building. Same mission. Two orders of magnitude apart — set entirely by what year you walked in.

Early isn't a strategy. It's a date stamp.

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Peter Sellis

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