Rocket Lab CEO Peter Beck makes a statement as he takes a $799,999 pay cut

By William Gavin

The company says it will take the money that would have gone toward Beck's future wages and bonuses and put it toward R&D projects

Rocket Lab CEO Peter Beck founded the launch company roughly 20 years ago.

Rocket Lab CEO Peter Beck is making an unusual move: Instead of pushing for a better salary after a "record-breaking" year, Beck is cutting his compensation down to a single dollar.

In a filing with the U.S. Securities and Exchange Commission on Monday, Rocket Lab (RKLB) said Beck would cut his base salary to $1, from $800,000, and would no longer expect or be entitled to an annual bonus or additional compensation for hitting annual targets.

Beck also voluntarily forfeited and cancelled 392,155 restricted stock units. At Monday's closing price, those would be worth about $22.5 million.

While he's taking a major pay cut, Beck is still pretty wealthy, and he has ways to continue making money as Rocket Lab progresses toward its goals.

Forbes estimates Beck's net worth to be about $3 billion. The CEO made $6.8 million in 2025, a sizable drop from the $20.1 million he earned in 2024, according to a filing. Stock awards made up the majority of his compensation in both years.

Beck directly owns 491,930 common shares in Rocket Lab. Through a trust, he also indirectly controls voting shares that represent nearly 46 million common shares upon conversion. Rocket Lab had more than 567 million shares outstanding as of Feb. 20. Beck's ownership stake means that if he helps drive appreciation in the company's stock price, he can grow his wealth.

In the filing, Rocket Lab said Beck's focus is on shareholder value rather than short-term cash or incentives. At Beck's request, the company said, capital that would have otherwise gone toward his compensation will instead be put to work on research and development and other priorities.

Read: Rocket Lab's stock slides as yet another rocket delay overshadows 'record year'

Rocket Lab has a number of initiatives underway. The company recently introduced a plan to make solar arrays that could power space-based data centers. It also has acquired or won approval to acquire three firms, and it's secured a $190 million contract with the U.S. Defense Department. Finally, it's working toward the first launch of its Neutron rocket later this year and is preparing to send a probe to Venus this summer.

As of the end of last year, Rocket Lab had a $1.85 billion backlog, up 73% from 2024. Revenue came in at $601.8 million for 2025, up 38%.

However, Rocket Lab is still unprofitable. In February, it reported an adjusted loss before interest, tax, depreciation and amortization of $101 million for last year, and it forecast an adjusted loss of as much as $27 million for the current quarter.

Rocket Lab's stock climbed 11% in afternoon trading on Tuesday. Its shares are still down 8% year to date.

Beck founded Rocket Lab in 2006 and took the company public through a special-purpose acquisition company in 2021. At the time, Rocket Lab was valued at $4.1 billion. It's now valued at $32.6 billion.

-William Gavin

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03-31-26 1602ET