- Rivian’s CEO signed a new pay deal tied directly to performance.
- RJ Scaringe’s salary doubles to $2 million under the new plan.
- The total package could reach as high as $4.6 billion in value.
Tesla CEO Elon Musk made history last week after securing a pay deal that could result in him making a staggering $1 trillion over the next decade. Now the boss of rival Rivian has bagged a similar performance-related package, though the $$$ numbers aren’t anything like as epic.
Also: Elon Musk’s Trillion Dollar Pay Hinges On A Bet That Could Break Tesla
Not that Rivian CEO JR Scaringe won’t be an extremely wealthy man if he hits the targets the company has set for him. His basic salary doubles to $2 million under the terms of the new package, and he stands to make around $4.6 billion if he’s ticked every box a decade from now.
As with Tesla’s offering to Musk, Rivian won’t hand out that thank you in cash, but instead as share options. Scaringe is receiving options to buy up to 36.5 million shares of Class A stock at $15.22 per share, but the award depends on Rivian’s stock price hitting milestones between $40 and $140 over the next 10 years.
What Needs To Happen First?
When you consider that Rivian’s share price is currently hovering around $15, having once been as high as $129 after its 2021 IPO, you can see that this is not going to be a walk in the park for Scaringe. He is also required to smash various operating income and cash flow targets, Reuters reports.
Unlike Tesla’s Musk deal, this one didn’t require shareholder approval and was decided by a Rivian board that wants to keep Scaringe focused on growing the company and ensuring the smooth development and rollout of next year’s Model Y rival, the R2.
More: Rivian Tore Apart A Xiaomi EV And Discovered What America Can’t Match
This isn’t the Rivian CEO’s first performance-related pay deal. A previous package inked in 2021depended on the automaker’s share price reaching $110-295, but this new contract recognizes that Scaringe had little chance of hitting even the lowest of those targets.
Rivian is currently dealing with the loss of federal EV tax credits and recently showed 600 employees the door in a cost-cutting drive.
