Frank Klein
About Frank Klein
Frank Klein is Chief Operations Officer at Rocket Lab, appointed September 16, 2024; he was age 52 at appointment and holds a Master’s in Electrical & Industrial Engineering (Baden‑Württemberg Cooperative State University Stuttgart) and a Bachelor’s in Business Administration (FernUniversität in Hagen) . He leads global operations to scale spacecraft, launch vehicles, and components amid >$1B backlog, aligning with RKLB’s 2024 revenue of $436.2M (+~78% YoY) and broad-based growth across Space Systems and Launch . His new-hire package included $400,000 base salary, 70% target bonus, 1,300,000 RSUs, and a $100,000 sign‑on bonus; RSUs vest quarterly over four years beginning November 22, 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Daimler AG (Mercedes-Benz Group) | Leadership across Vehicle Research; Trucks, Cars, Vans manufacturing; VP Vans Operations | 27 | Led global production across 12 sites, logistics, IE, quality; responsibility for >14,000 employees |
| Magna Steyr AG | VP Engineering & Manufacturing; President | 2019–2020; 2020–2022 | Led operations across 3 continents and 13,000 employees; contract manufacturing scale (~US$6B turnover) |
| Rivian Automotive | Chief Operating Officer | 2022–2024 | Helped transform from low-volume startup to higher-volume premium EV; responsible for 9,000+ employees |
External Roles
No public-company directorships disclosed for Mr. Klein in RKLB filings reviewed .
Fixed Compensation
| Metric | 2024 |
|---|---|
| Annual Base Salary (offer) | $400,000 |
| Salary Earned (pro‑rated) | $107,692 |
| Target Annual Bonus % | 70% of base salary |
| Bonus Paid | $80,415 discretionary (plus $100,000 sign‑on) |
| Perquisites | $20,000 temporary housing stipend; $11,107 tax gross‑ups; $3,231 401(k) match |
Performance Compensation
Annual Bonus Framework
RKLB adopted a Senior Executive Cash Incentive Bonus Plan on August 25, 2025. Corporate Performance Goals may include cash flow (operating/FCF), EBITDA, net income, stock price change, EVA, strategic transactions, operating income, ROIC/ROA/ROE, TSR, productivity, expense efficiency, margins, working capital, EPS, sales/market share, revenue/ARR, measured vs targets with min/max hurdles; goals can be at company, unit, product line or market levels and differ by executive/period . For 2024, RKLB did not have a formal bonus program; NEO bonuses were discretionary (Mr. Klein: $80,415 discretionary) .
| Metric | Weighting | Target | Actual | Payout | Notes |
|---|---|---|---|---|---|
| 2024 Annual Bonus | N/A | N/A | N/A | $80,415 | Discretionary; no formal plan for 2024 |
| Sign‑on Bonus | N/A | N/A | N/A | $100,000 | Repayable if resignation or termination for cause before Sept 16, 2025 |
| 2025 Plan Metrics | Committee‑set | Target/Min/Max | Measured post period | Cash per formula | Plan adopted Aug 25, 2025 |
Equity Awards (Time‑Based RSUs)
| Grant Date | Type | Shares | Grant‑Date Fair Value | Vesting |
|---|---|---|---|---|
| Sep 19, 2024 | Time‑based RSUs | 1,300,000 | $9,256,000 | 1/16 vest Nov 22, 2024; thereafter each Mar 1, May 22, Aug 22, Nov 22, subject to continued service |
RSU Vesting Timeline (shares per tranche: 81,250)
| Nov 22, 2024 | Mar 1, 2025 | May 22, 2025 | Aug 22, 2025 | Nov 22, 2025 |
|---|---|---|---|---|
| 81,250 | 81,250 | 81,250 | 81,250 | 81,250 |
Vesting value realized in 2024: 81,250 shares; $1,889,875 based on closing price at vest date .
Equity Ownership & Alignment
| Item | As of 12/31/2024 |
|---|---|
| Unvested RSUs outstanding | 1,218,750 units; market value $31,041,563 (priced at $25.47) |
| RSUs vested in 2024 | 81,250; value realized $1,889,875 |
| Stock options | None disclosed for Klein |
| Hedging/Pledging | Company prohibits hedging/pledging without prior committee approval; no pledges by Klein disclosed in filings reviewed |
| Ownership guidelines | Not disclosed for Klein in filings reviewed |
Alignment notes • Quarterly vesting cadence (four times per year) can create regular liquidity events; hedging/pledging generally prohibited, mitigating misalignment risk .
• Change‑in‑control provides full acceleration of time‑based awards on double trigger, materially increasing deal‑related equity value realization .
Employment Terms
| Provision | Terms |
|---|---|
| Employment status | At‑will; standard duties; location Long Beach, CA |
| Base/Bonus eligibility | $400,000 base; 70% target bonus |
| Severance – Not in CIC | 6 months base salary ($200,000) and up to 6 months COBRA contributions ($9,657) |
| Severance – In CIC (double trigger) | 100% base salary ($400,000), 100% target bonus (amount not shown for 2024), 12 months COBRA ($19,313), and full acceleration of unvested time‑based equity |
| Clawback | Dodd‑Frank‑compliant policy adopted Aug 2023; recovers excess incentive comp over 3 years preceding a required restatement |
| Non‑compete/Non‑solicit | Restrictive covenants apply during employment and 6 months post‑employment (CEO 24 months) |
| Tax gross‑ups | No excise tax gross‑ups; 280G/4999 cut‑back to maximize after‑tax benefit; perquisites generally without gross‑ups except standard relocation/housing |
| Indemnification | Standard indemnification agreement entered on employment |
| Anti‑hedging/pledging policy | Prohibits hedging/pledging without committee approval; pledging requires Nominating & Governance Committee approval |
Quantified CIC table (as of 12/31/2024 price $25.47):
| Item | Not in CIC | In CIC |
|---|---|---|
| Cash Severance | $200,000 | $400,000 |
| COBRA Payments | $9,657 | $19,313 |
| Accelerated Equity Vesting | — | $31,041,563 |
Performance & Track Record
| Area | Detail |
|---|---|
| Company performance context (2024) | Revenue $436.2M (+~78% YoY); broad‑based growth (Space Systems +$138.1M; Launch cadence +$53.5M); backlog rose to $1,067.0M |
| Operations mandate | Scale manufacturing across spacecraft and launch to meet >$1B backlog |
| Governance sentiment | Say‑on‑Pay support ~99% at 2024 annual meeting; Compensation Committee retained independent advisor; compensation aligned to performance objectives |
Compensation Structure Analysis
- Mix and design: New‑hire package emphasizes at‑risk equity via large time‑based RSU grant with multi‑year vesting; 2024 bonus was discretionary due to lack of formal plan; 2025 plan introduces structured metrics and targets .
- Double‑trigger CIC: Aligns retention and transaction discipline; full acceleration of time‑based equity only on CIC plus qualifying termination, reducing windfall risk while preserving retention value .
- Perquisites: Limited and recruitment‑related (temporary housing, modest gross‑up); no executive retirement plans; standard 401(k) matching .
Related Party/Conflicts
No related‑party transactions involving Mr. Klein over $120,000 disclosed; no arrangements or understandings for appointment; standard indemnification agreement entered .
Compensation Peer Group (Benchmarking)
The Compensation Committee uses peer groups and survey data to set competitive pay; peer group refreshed in 2024 to emphasize aerospace/related tech; Klein’s compensation was established with peer market data .
Say‑on‑Pay & Shareholder Feedback
2024 Say‑on‑Pay support ~99%; Committee indicated no material changes from vote; ongoing annual Say‑on‑Pay expected .
Expertise & Qualifications
- Technical/operations: Extensive manufacturing leadership across automotive and EV with large global teams; engineering and business degrees .
- Scale execution: Proven track record scaling production across multiple continents and high‑volume transitions .
Work History & Career Trajectory
- Daimler/Mercedes‑Benz Group: 27 years across multiple manufacturing leadership roles .
- Magna Steyr AG: VP Eng & Manufacturing (2019–2020), President (2020–2022) .
- Rivian Automotive: COO (2022–2024) .
Compensation Committee & Governance
Compensation Committee composed of independent directors; retains independent consultant (Compensia); anti‑hedging/pledging policy; clawback compliant with SEC/Nasdaq; executive severance plan governs NEO severance/CIC .
Investment Implications
- Quarterly RSU vesting schedule could create periodic supply overhang; however, anti‑hedging/pledging constraints partially mitigate adverse alignment signals .
- Double‑trigger accelerated vesting with substantial unvested equity value ($31.0M at FY‑end) implies strong retention and potential deal‑related value realization for Klein in a CIC scenario, but not an automatic windfall absent termination .
- 2025 bonus plan formalizes performance metrics (EBITDA, FCF, revenue, margins, TSR, etc.), improving pay‑for‑performance linkage versus 2024 discretionary bonus context .
- Operationally, Klein’s large‑scale manufacturing background aligns with RKLB’s ramp (Space Systems growth, launch cadence, backlog increase), a positive for execution and margin trajectory; governance support (99% Say‑on‑Pay) indicates investor acceptance of compensation design .