Rivian just doubled its CEO's salary and gave him a $4.6B pay package

Core Insights - Rivian's CEO RJ Scaringe is receiving a significant salary increase and a performance-based stock options award potentially worth up to $4.6 billion to retain and incentivize him during a critical phase for the company [1][2][4] Compensation Package Details - Scaringe's salary will rise from $1 million to $2 million, and he will have the option to purchase up to 36.5 million shares of Rivian stock [1][2] - The previous compensation package allowed Scaringe to buy about 20.4 million shares, with the new package providing more favorable stock price hurdles [2][4] - The new stock options are structured in tranches, with the first tranche accessible if Rivian's stock reaches $40 per share, compared to the previous requirement of $110 [4] Stock Performance Expectations - Rivian's stock was trading at $15.23, indicating an approximate 820% increase is needed for Scaringe to realize the maximum value of his pay package [3] - If the entire award is earned, Rivian shareholders could see around $153 billion in value creation [3] Company Context and Strategic Moves - Rivian is preparing for the launch of the R2 SUV, priced at $45,000, which aims to broaden its market appeal [5][6] - The company recently announced layoffs of over 600 employees, about 4.5% of its workforce, to align with the upcoming R2 launch and the need for profitable scaling [11] Market Environment - Rivian's previous pay package goals were deemed unrealistic in the current market, reflecting broader challenges faced by companies during the post-COVID period [5] - Rivian reported a 78% year-over-year revenue increase but also posted a net loss of $1.1 billion for the third quarter [11]