Shares of AST SpaceMobile Inc. (NASDAQ:ASTS) are trading higher Wednesday morning as investors continue to digest a newly adopted executive change-of-control severance policy alongside sector momentum from a recent SpaceX launch and ongoing constellation expansion.
Here’s what investors need to know.
- AST SpaceMobile shares are trending higher. Why are ASTS shares climbing?
Satellite Deployment and Constellation Expansion
The governance update follows operational progress across AST SpaceMobile’s low Earth orbit constellation. On September 11, the company applied to extend its 30-day Federal Communications Commission testing window following the successful August 5 launch of its BlueBird 11, 12 and 13 satellites aboard a SpaceX Falcon 9 rocket.
The deployment expanded AST SpaceMobile’s active orbital fleet to 13 satellites, keeping the firm on track to initiate beta direct-to-device cellular services across the United States by late 2026.
Telecom Backing and Defense Contracts
Late Tuesday, management at partner AT&T publicly defended the carrier-integrated model, questioning competitor SpaceX’s direct-to-consumer wireless strategy. AST SpaceMobile utilizes a “partner-first” business model, integrating directly with existing carrier networks.
The company currently holds commercial agreements with over 60 mobile network operators, including AT&T, Verizon and Vodafone, representing a collective base of more than 3 billion subscribers.
Beyond commercial telecom, AST SpaceMobile is actively diversifying its revenue base through government channels. The company recently reported a contracted revenue backlog of approximately $1.3 billion, which includes expanding engagements with the U.S. Space Development Agency.
Change-of-Control Executive Severance Policy
According to a recent regulatory filing, AST SpaceMobile’s Compensation Committee adopted a new Senior Management Change of Control Severance Policy on Sept. 25, establishing standardized takeover protections for key executives. The policy covers the Chief Executive Officer, President and all Executive and Senior Vice Presidents in the event of a qualifying termination within 12 months following a change of control (or 180 days prior).
Under the terms, a qualifying termination would grant the CEO a lump-sum cash payout equal to 2.0 times the sum of base salary and target bonus, plus 24 months of health coverage subsidies. Other eligible executives would receive 1.5 times their salary and bonus sum alongside 18 months of health benefits.
ASTS Stock Edges Higher Wednesday
ASTS Price Action: AST SpaceMobile shares were trading 4.92% higher at $62.32 at the time of publication on Wednesday, according to Benzinga Pro data.
Image: Shutterstock
Login to comment