Quick overview

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More than 1,000 current and former SpaceX employees have united to bargain with wealth management companies for better pricing and access to sophisticated tax-saving financial products.

The group has taken into consideration more than 20 financial advisers and private banks

. According to the document, they are “leveraging collective power” to obtain “significantly lower fees” for financial advice, paying less than 0.5 percent of all assets under management instead of the customary 1 percent fee. Workers who are eligible for IPO windfalls usually look to their personal wealth advisors.

The SpaceX group’s advocacy for a form of collective bargaining has the potential to produce a new playbook for startup workers to manage the wealth unlocked by successful initial public offerings (IPOs), a cohort to grow significantly.

A former engineer at Elon Musk’s rocket, satellite, and artificial intelligence company is leading the effort, which has been organized in a private Slack room, according to people close to the negotiations who requested anonymity due to the private nature of the talks.

An email sent to financial advisers earlier this year stated that the group comprised more than 200 individuals with at least $2 billion in wealth. According to the people, the group has expanded dramatically since then, and its assets are currently valued at up to $20 billion. The intriguing aspect of this situation is not that workers seek financial guidance. According to Brian Werner, chief investment officer at Winthrop Partners, “they’re realizing their combined purchasing power and using it to negotiate access to specialized expertise.”.

“I wouldn’t be shocked if more employee groups at rapidly expanding private businesses pursued comparable agreements.