Rivian Automotive CEO Gets An Elon Musk-Style Pay Raise

Core Viewpoint - Rivian Automotive has revised CEO Robert Scaringe's compensation package to align with performance goals, similar to Tesla's approach with Elon Musk, potentially worth up to $4.6 billion over the next decade [1][2]. Compensation Structure - The new pay package includes options for 36.5 million shares at $15.22 each, an increase of approximately 16 million shares from the previous award [3]. - The vesting of these shares is contingent upon Rivian achieving share price targets between $40 and $140 over ten years, alongside new operating income and cash flow objectives through 2032 [3][6]. - The previous options tied to higher share prices ($110 to $295) were discarded due to low likelihood of achievement [3]. Strategic Intent - The revised compensation reflects Rivian's aim to retain its founder and drive growth and profitability, especially with the upcoming launch of the R2 SUV, which is designed to compete with Tesla's Model Y [4]. - Scaringe's annual salary has been doubled to $2 million to better align with shareholder returns, based on recommendations from independent consultants [4]. Additional Incentives - Scaringe has also received 1 million common units in Mind Robotics, a Rivian spin-off focused on industrial AI, which could grant him a potential 10% stake if profit targets are exceeded [5]. - He will serve as board chairman of Mind Robotics, with Rivian maintaining a stake in the venture [5]. Financial Implications - If all performance targets are met, the total payout could represent about a quarter of Rivian's current market value and slightly exceed its cash balance of $4.4 billion as of the end of September [6].