When you’re about to become a multi-millionaire, it helps to have a thousand friends in the same boat. More than 1,000 current and former SpaceX employees have organized a collective effort to negotiate reduced advisory fees from wealth management firms and private banks, targeting rates below 0.5% of assets under management.

The standard industry rate sits around 1% AUM. That might sound like a rounding error, but on the kind of equity windfalls expected from SpaceX’s IPO, the difference between 0.5% and 1% could mean millions of dollars per person over time.

The numbers behind the negotiation

SpaceX has adjusted its IPO valuation target to a minimum of $1.8 trillion, down from prior discussions that floated figures north of $2 trillion. The company is planning to raise up to $75 billion through the public offering.

Wall Street banks working the deal are expected to earn around $500 million in underwriting fees. SpaceX executives are reportedly negotiating those fees down as well, a parallel effort to the employee-driven push on the wealth management side.

The company has also reserved up to 5% of IPO shares for certain employees and their friends and family through a directed share program, according to planning details that surfaced as of June 1, 2026. That allocation, applied to a $75 billion raise, would translate to billions in shares set aside for insiders and their networks.

The employee negotiations and IPO fee discussions began surfacing in May 2026, according to planning documents viewed by Bloomberg.

Why employees are organizing like this

Wealth management fees have historically been a take-it-or-leave-it proposition. An individual showing up at a private bank with a few million dollars doesn’t have much leverage. A coordinated group of over 1,000 people, each expecting significant equity payouts from one of the most anticipated IPOs in history, is a different conversation entirely.

The math is straightforward. If an employee holds equity worth $10 million and pays a 1% annual management fee, that’s $100K per year going to an advisor. Drop the rate to 0.5%, and they save $50K annually.

The group isn’t just focused on fees. Employees are also exploring advanced tax-saving strategies in anticipation of the wealth creation expected from the public listing. For people holding stock options or restricted stock units, the tax implications of an IPO can be enormous.