Shares of AST SpaceMobile (ASTS) climbed 0.2% overnight after the company disclosed a new change-of-control severance plan covering its CEO and senior executives.
The plan, adopted by the board’s compensation committee and disclosed in a Monday filing, covers CEO Abel Avellan along with the company’s president, executive vice presidents, and senior vice presidents.
Under the policy, benefits are triggered only if an eligible executive is dismissed without cause or resigns following a change to their role within a defined period.
That qualifying departure must occur within a year after a change of control or, in certain circumstances, within 180 days before one takes place.
A change of control alone would not trigger severance payments, meaning executives must also experience a qualifying departure to receive any benefits under the plan.
CEO Abel Avellan would receive a lump sum equal to twice the sum of his annual base salary and target performance bonus if those conditions are met.
Other covered executives would receive 1.5 times that same combined figure, along with a prorated target bonus and a payment tied to health coverage costs.
The health coverage payment spans 24 months for the CEO and 18 months for other eligible executives, and all recipients must sign a release of claims against the company to qualify.
The policy also addresses stock compensation, with performance-based awards generally converting to time-based awards at target upon a change of control, though awards tied to share-price conditions would be forfeited if the deal price falls below that threshold.
AST stated that the plan is intended to give senior leaders financial security amid uncertainty created by a potential change of control.
On Stocktwits, retail sentiment for ASTS fell further into bearish territory over the past day, accompanied by a 28% rise in 24-hour message volume as traders debated the implications of the filing.
“Do you smell a buyout?” one user asked, while another shared the filing and said, “This is something to digest…Standard?? Or??…..”
One trader questioned whether the new severance terms signaled potential downsizing, while another pointed out that the policy itself does not indicate that AST is being acquired.
ASTS stock fell more than 1% on Monday to $61 but remains up 3% this month, putting it on track for its best monthly gain since May.
Beyond the filing, investors are still waiting for a shipment or launch date for BlueBirds 14-16, as AST’s broader launch campaign target shifted from 2026 to early 2027.
AST said last month that BlueBird 14 was complete and that satellites 15 and 16 were nearing completion, but no official date has been announced and no formal delay has been reported.
In Europe, Germany amended a filing last week for a proposed 344-satellite D-BLUEBIRD network, though the International Telecommunication Union’s record does not specify what changed or confirm the network is in use.
AST and Vodafone’s SatCo venture plans to distribute AST’s satellite service to European mobile operators, with a satellite operations center planned in Germany.
ASTS stock has declined 16% year-to-date, even as the company continues expanding its satellite infrastructure and commercial partnerships across multiple continents.
