Rivian’s CEO sees dollar signs
According to recent reports by Reuters and TechCrunch, the electric adventure vehicle brand Rivian has given its founder and CEO, RJ Scaringe, a new performance-based pay package that could land him in the billionaire’s club if the company’s goals are met. In a filing with the Securities and Exchange Commission (SEC) dated November 6, Rivian announced that it would increase the CEO’s base salary to $2 million per year and grant him options to purchase up to 36.5 million shares of Rivian’s Class A stock at $15.22 per share.
All in all, Scaringe could receive up to $4.6 billion (in the form of Rivian shares) if the EV adventure brand meets specific goals; the majority of which lean on hitting eleven stock price goals of $40 to $140 a share over the next 10 years, as well as new operating income and cash flow targets over the next seven years.
No sales, no stock options for RJ, Rivian said
These goals are dependent on the successful production and sales of its smaller, soon-to-be-released R2 mid-size SUV, as well as subsequent models like the R3, which are in the pipeline. In its SEC filing, Rivian stated that it offered the package to retain Scaringe as CEO and emphasized that his involvement in the company is crucial to its goals, especially given the significant leverage it is placing on its smaller, lower-priced new cars.
“The 2025 CEO award is designed to retain and incentivize Dr. Scaringe to execute on the Company’s critical next phase as it progresses its technology roadmap and launches R2, which the Committee believes is in the best interests of the company and its stockholders,” the company told the SEC.
Scaringe’s new pay package replaces Rivian’s previously approved $6 billion pay plan from back in 2021. It gave him the right to buy about 20 million shares if Rivian’s share price passed $110, $150, $220, and $295; milestones that Rivian has yet to achieve and that the company itself recognizes as “unlikely.”
Rivian
However, this deal depends on Scaringe’s ability to deliver on what are basically “easier” goals. The company noted in its SEC filing that the pay package is “structured in such a way that ensures the options only vest should the company deliver significant value to our shareholders.” Per Rivian, Scaringe won’t see a cent from the awarded shares before “significant stock price and financial performance improvements” are achieved, and that its shareholders will see “$153 billion of value creation” if he hits all the milestones.
Rivian
Rivian has some work to do
The news of Scaringe’s new multi-billion-dollar pay package comes on the heels of Tesla’s recent $1 trillion pay package for its CEO, Elon Musk. On November 6, over 75% of Tesla shareholders approved a record $1 trillion pay package for CEO Elon Musk based on a combination of operational and valuation milestones over 10 years, including goals like 20 million Tesla vehicles delivered, 10 million subscriptions to the Full Self-Driving autonomous driving assistance system, 1 million humanoid robots delivered, and 1 million robotaxis in operation.
Notably, Scaringe’s pay package was not subject to a shareholder vote, but his compensation package comes just as Rivian made some market-based adjustments to its workforce. In an October 23 report in the Wall Street Journal, Rivian showed the door to more than 600 people in its vehicle operations and marketing departments in an effort to reduce costs and “profitably scale” itself ahead of the launch of the new R2 midsize SUV.
“These are not changes that were made lightly,” Rivian Chief Executive Officer RJ Scaringe said in an email seen by the Journal. “With the changing operating backdrop, we had to rethink how we are scaling our go-to-market functions.”
FInal thoughts
According to Rivian’s internal numbers, the company reported a record 13,201 sales in Q3 2025, a 32% year-over-year increase over the previous quarter; however, this reflects customers rushing to buy EVs before the federal EV tax credit expired. It expects sales to dip, and currently forecasts sales between 41,500 and 43,500 vehicles by the end of 2025, which is lower than the 51,579 units it moved in 2024 and the 50,100 units in 2023.
As for the R2, Scaringe noted during Rivian’s Q3 2025 earnings call that a mid-trim, dual-motor variant will be the first to be made available, though he stressed to Bank of America research analyst Federico Merendi that the company is “bullish” on R2 because the “average” $45,000 to $50,000 segment has been dominated by one brand: Tesla.
“With [Tesla] taking up roughly half the market, 50% market share, it’s not a reflection of a healthy market. It’s a reflection of a very underserved market in terms of choice and options,” Scaringe said. “And so what we’re building with R2 is very different than a Model Y. It’s a similar size, similar price, but very, very different in terms of the way it’s executed.”
