The first privatisation by the Labour Government could generate a £145 million paper fortune for up to 230 defence executives.
Qinetiq - the former research arm of the Ministry of Defence with a major facility in Malvern - is expected to float on the London Stock Exchange this year with a likely price tag of more than £1 billion.
According to one report yesterday, the spoils for Qinetiq's management will be unprecedented for any privatisation in the UK.
Chief executive Sir John Chisholm paid £129,000 for a holding that is expected to grow to 2.2 per cent when two sets of performance targets are met and would be worth £22 million.
Another major winner is likely to be finance director Graham Love, whose 1.8 per cent stake would be worth £18 million on an initial outlay of £106,000. A further seven senior executives are expected to own 4.7 per cent - worth £47 million.
Qinetiq employs more than 9,000 staff across the UK at locations including Bristol, Bedford, Rosyth in Fife and Malvern.
According to its 2004 report and accounts, the company is 56 per cent owned by the Ministry of Defence, 31 per cent by private equity firm Carlyle and 13 per cent by employees and managers.
An MoD spokesman said no announcement on the future of the business has been made but added: "If and when the Government decides to float Qinetiq, it will be in a way and at a time which will maximise returns for the UK taxpayer."
Customers of Qinetiq include the Pentagon, the US Department of Homeland Security, credit card firm Barclaycard and jet engine maker Rolls-Royce.
