Rivian Ties CEO’s $4.6B Compensation Package to Ambitious Stock Price and Profit Targets

Rivian Automotive has structured a performance-based compensation plan for CEO RJ Scaringe that could yield up to $4.6 billion over a decade. The electric vehicle maker's approach mirrors Tesla's controversial 2018 CEO pay package, linking option vesting to audacious market capitalization and operational milestones.

The new grant provides rights to purchase 36.5 million shares at $15.22 each, contingent upon Rivian's stock reaching price plateaus between $40 and $140. These equity incentives complement rigorous operating income and cash FLOW benchmarks requiring achievement within seven years. Rivian's board canceled a previous 2021 incentive plan after its $110-$295 share price targets became implausible.

This compensation framework emerges as Rivian prepares to launch its R2 SUV, a direct challenger to Tesla's Model Y. The strategic timing suggests confidence in Scaringe's ability to transition the company from premium electric vehicles to mass-market profitability.