Sir Peter Beck
About Sir Peter Beck
Founder of Rocket Lab (2006), President and CEO since July 2013, and Chairman since May 2021; age 48 and currently designated the Series A Preferred Stock Director with term expiring at the 2027 annual meeting . 2024 was a step-change year operationally: revenue reached $436.2 million (+~78% YoY) and backlog increased to $1,067.0 million . Electron accumulated 54 successful orbital missions through 12/31/24 (56 by 2/27/25) and was the second most frequently launched U.S. orbital rocket in 2024, underscoring execution under Beck’s leadership . From the company’s August 25, 2021 public listing baseline, a hypothetical $100 invested in RKLB equaled $244 by year-end 2024, illustrating strong multi-year TSR even with volatility .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Rocket Lab | Founder | 2006–present | Founded company; led development of Electron and LC-1 launch site . |
| Rocket Lab (Legacy RL) | President & CEO | 2013–present | Drove high-cadence small launch model and advanced manufacturing (3D-printed engines, electric pump-fed engines, carbon composites) . |
| Rocket Lab (Legacy RL) | Chairman (Legacy RL), Chairman (Board) | May 2021–present | Board leadership; transition from Legacy RL to public company governance . |
| Rocket Lab | Treasurer | Jul 2013–May 2021 | Early-stage financial stewardship . |
| Rocket Lab | Secretary and CFO | Jul 2013–Sep 2015 | Built finance/admin foundations pre-public . |
| Fisher & Paykel | Precision engineer apprentice | Began 1993 | Early engineering training and product/machinery design . |
| NZ Govt Research Institute | Engineer (advanced composites) | From 2003 | Led programs on advanced structures/materials; technology optimization . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| University of Auckland | Adjunct Professor (Aerospace Engineering) | Appointed pre-2025 | Academic linkage and talent pipeline; recognition for technical innovation . |
| New Zealand Government | Knighted | 2024 | National recognition for contributions to aerospace and entrepreneurship . |
Fixed Compensation
- 2024 cash compensation actions: Base salary increased to $800,000 effective retroactive to Oct 1, 2024; target annual bonus set at 100% of base salary . 2024 discretionary cash bonus paid: $783,750 .
Multi-year summary compensation:
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 486,751 | 500,000 | 575,000 |
| Bonus ($) | 350,000 | 462,714 | 783,750 |
| Stock Awards ($) | — | — | 18,163,473 |
| All Other Comp ($) | 1,069 | — | 588,535 |
| Total ($) | 837,820 | 962,714 | 20,110,758 |
Notes:
- “All Other Compensation” in 2024 includes $415,000 HSR filing fee reimbursement and $173,535 legal fee reimbursement related to the preferred exchange .
Performance Compensation
- Long-term equity introduced in 2024 after committee review; prior to 2024, CEO had not received LTI during his tenure .
- Structure is time-based RSUs (no PSUs disclosed). 2025 indicates ongoing RSU award targeting $8,000,000 value vesting quarterly over four years, number determined by 30-day average price before grant .
2024/2025 RSU awards and vesting:
| Grant | Grant Date | Shares (#) | Vesting | First Vest Date | Grant-date Fair Value ($) |
|---|---|---|---|---|---|
| CEO FY24 RSU Grant | 12/3/2024 | 631,498 | 5/16 at first vest; then 1/16 each Mar 1/May 22/Aug 22/Nov 22 | Amended to Apr 4, 2025 | 14,530,769 |
| CEO FY24 Special RSU | 12/3/2024 | 157,875 | 100% single vest | Amended to Apr 4, 2025 | 3,632,704 |
| CEO FY25 Annual RSU | 2025 (eligibility) | Value-based (≈$8M) | Equal quarterly over 4 years | Post-grant | Value-driven |
Performance metrics and payouts:
- Annual cash bonus for 2024 was discretionary; no quantified formulaic metrics or weightings disclosed for the CEO; RSUs are time-based (not performance-based) .
Vesting/selling pressure watch:
- 2025-04-04 vesting totaled 355,218 shares (197,343 first tranche of FY24 RSUs; 157,875 Special RSU), with subsequent 1/16 quarterly vestings on Mar 1/May 22/Aug 22/Nov 22 thereafter .
Equity Ownership & Alignment
- Beneficial ownership (as of 7/9/2025): 51,385,405 shares; 9.8% voting power .
- Composition includes 5,000,000 common shares and 45,951,250 shares of Series A Convertible Participating Preferred Stock held by Equatorial Trust (family trust), convertible 1:1 into common; includes 39,468 RSUs vesting within 60 days of record date .
- Preferred exchange: In Dec 2024/Jan 2025, 50,951,250 common shares beneficially owned by Beck exchanged into 50,951,250 Series A Preferred; automatic conversion triggers include transfer (other than permitted), CEO no longer serving, death/disability, or falling below 5% beneficial ownership .
- Outstanding equity at 12/31/2024: 631,498 unvested RSUs and 157,875 special RSUs (both time-based); no outstanding options for Beck .
- Anti-hedging/anti-pledging policy: Prohibits hedging/pledging absent Nominating & Governance Committee approval; policy disclosed with one approved pledge for CFO (not Beck) in April 2025 . No pledging by Beck disclosed.
Employment Terms
| Term | Detail |
|---|---|
| Role/Tenure | President & CEO since July 2013; Chairman since May 2021; Series A Preferred Stock Director; age 48 . |
| 2024 Compensation Reset | Base $800,000 (effective 10/1/2024), target bonus 100% of base; LTI RSUs as above . |
| Severance (non‑CIC) | 12 months base salary; up to 12 months equivalent health premium cash payments (COBRA ineligible for Beck) . |
| Severance (CIC + Qualifying Termination) | 150% of base salary and 150% of target bonus; 18 months equivalent health premium cash payments; full acceleration of time-based awards (performance awards per award terms) . |
| Notice Periods | 3 months notice for termination without cause; 6 months for termination due to disability; immediate termination or pay in lieu if for cause . |
| Restrictive Covenants | Effective during employment; CEO subject to 24-month post-employment restrictions; IP assignment and confidentiality obligations . |
| Clawback | Dodd-Frank compliant clawback adopted Aug 2023 for executive incentive compensation upon restatement (3-year lookback) . |
| Tax Gross-Ups | No excise tax gross-ups on CIC payments; “best net” cutback if 4999 excise tax would reduce net . |
Performance & Track Record
- Revenue/backlog: 2024 revenue $436.2 million (+~78% YoY), backlog up to $1,067.0 million .
- Launch execution: 54 successful orbital missions through 12/31/24 (56 by 2/27/25); Electron was the second most frequently launched U.S. orbital vehicle and second globally in 2024 .
- Launch mishaps: Recorded three failed missions in July 2020, May 2021, and September 2023; each required root-cause investigation and FAA authorization before resumption .
- TSR context: Hypothetical $100 in RKLB from 8/25/2021 equaled $244 by year-end 2024; peer reference (ARKX ETF) $95 over that period .
Board Governance
- Roles: CEO and Chairman (combined); Board maintains flexibility on leadership structure and appoints a Lead Independent Director (currently Merline Saintil) who presides over executive sessions .
- Independence: All directors except Beck are independent under Nasdaq and SEC rules .
- Board/committee meeting cadence: 2024 included 4 regular and 4 special Board meetings; each director attended ≥75% of meetings of the Board/committees on which they served .
- Committee composition: Beck is not listed as a member of the Audit, Compensation, Nominating & Corporate Governance, or Government Security Committees; Audit chaired by Jon Olson; Compensation chaired by Edward Frank; Nominating chaired by Merline Saintil .
- Director compensation: Beck receives no additional pay for Board service (compensated as CEO); non-employee director comp schedule disclosed separately .
Dual-role implications:
- Combined CEO/Chair consolidates authority; mitigants include Lead Independent Director, independent committee structure, and regular executive sessions without management .
Director Compensation (as Director)
- No additional compensation for Beck’s Board role; CEO compensation is disclosed in executive tables .
Compensation Structure Analysis
- Shift in mix: 2024 introduced substantial time-based RSUs for CEO after years without LTI, increasing at-risk, equity-linked pay; base salary was raised (to remain competitive from below 25th percentile cash comp) while bonus remains discretionary (no formulaic metrics disclosed) .
- Instrument choice: RSUs (not options) — Company disclosed no option grants in 2024, reflecting a lower-risk equity vehicle and potential dilution sensitivity; valuation explained relative to 30-day average price vs grant date price volatility .
- Governance checks: Independent compensation consultant (Compensia) engaged; special committee of independent directors approved the Preferred Stock Exchange to support retention/continuity .
Related Party Transactions
- Preferred Stock Exchange: Exchanged 50,951,250 common shares (beneficially owned by Beck) into 50,951,250 Series A Preferred with 1:1 convertibility and automatic conversion triggers tied to role/status/ownership .
- 2024 reimbursements to Beck: $415,000 (HSR filing fee) and $173,535 (legal fees related to exchange) reported in “All Other Compensation” .
Compensation Peer Group (2024/2025 updates)
- Peer sets used for benchmarking include aerospace/space/tech names such as AeroVironment, Iridium, Kratos, MDA Space, Viasat, among others; 2024 revision emphasized aerospace and high-tech comparables amid company growth and market changes .
- Context: The Compensation Committee noted Beck’s cash compensation was below the 25th percentile of peers prior to 2024 changes .
Say‑on‑Pay & Shareholder Feedback
- 2024 Say‑on‑Pay support: ~99% of votes cast in favor; Company intends to continue annual Say‑on‑Pay and considered feedback in program continuity .
Risk Indicators & Red Flags
- CEO/Chair duality present; mitigated by Lead Independent Director and independent committees .
- Hedging/pledging risk: Policy prohibits hedging/pledging without approval; a CFO pledge was approved (not Beck), indicating a controlled exception framework .
- Program design: No excise tax gross-ups; double-trigger CIC; Dodd‑Frank clawback adopted in 2023; no 2024 option grants or repricing noted .
- Human capital key‑person risk: 10‑K explicitly highlights dependence on Beck and notes personal high-risk activities; no key‑person life insurance maintained .
Expertise & Qualifications
- Award-winning engineer with national/international honors (Royal Aeronautical Society Gold Medal, Royal Society of NZ medals); adjunct professor appointment; knighted in 2024 for aerospace and entrepreneurship .
- Deep technical leadership across propulsion, composites, and launch operations, reflected in advanced manufacturing innovations (3D‑printed engines, electric pump-fed propulsion) .
Equity & Ownership Detail (as of 12/31/2024, unless noted)
| Item | Detail |
|---|---|
| Beneficial Ownership | 51,385,405 shares; 9.8% voting power (incl. trust holdings and RSUs vesting within 60 days) . |
| Trust Holdings | 5,000,000 common + 45,951,250 Series A Preferred in Equatorial Trust (1:1 convertibility) . |
| Unvested RSUs | 631,498 (time-based) and 157,875 (special) at 12/31/24 . |
| Vested on 4/4/2025 | 197,343 (first tranche of FY24 RSUs) + 157,875 (special) . |
| Options | None outstanding for Beck as of 12/31/24 . |
| Hedging/Pledging | Prohibited absent approval; no Beck pledges disclosed . |
Employment & Contracts Snapshot
| Provision | Non‑CIC | CIC + Qualifying Termination |
|---|---|---|
| Cash Severance | 12 months base salary | 150% base salary + 150% target bonus (lump sum) |
| Benefits | Up to 12 months cash equivalent of employer health contributions (COBRA ineligible) | 18 months cash equivalent of employer health contributions |
| Equity | — | Full acceleration of time‑based awards; performance awards per terms |
| Notice | 3 months (without cause); 6 months (disability); for‑cause immediate or pay in lieu | Same, per contract |
Investment Implications
- Alignment: Beck’s substantial ownership (9.8% voting power) and the 2024/2025 RSU program tie outcomes to equity value; anti‑hedging/pledging limits misalignment risk. The Series A Preferred exchange concentrates voting/economic exposure while providing defined conversion triggers tied to his role and ownership—positive for retention/continuity but a governance sensitivity to monitor .
- Near‑term supply/vesting cadence: The April 4, 2025 vest (355,218 shares) and ongoing quarterly vesting may create periodic supply overhangs; absence of disclosed pledging by Beck mitigates forced‑sale risk; trading policy remains in effect .
- Pay-for-performance: Program skews to time-based RSUs (no disclosed PSUs), emphasizing retention and long-term stock exposure rather than near-term operating hurdles; investors seeking stronger linkage to revenue/margin/TSR targets may press for PSU adoption as Neutron milestones approach .
- Execution risk/return: Strong 2024 growth and launch cadence help support incentives; however, historical launch failures, Neutron development timelines, and government exposure remain key operational/contracting risks explicit in filings; CEO key‑person risk is highlighted in the 10‑K .
- Shareholder sentiment: 99% Say‑on‑Pay support in 2024 indicates broad approval of the redesigned program and leadership continuity measures, reducing near‑term governance overhangs despite CEO/Chair duality .