EV maker Rivian gives CEO a Musk-style pay package worth up to $4.6 billion

Core Viewpoint - Rivian has announced a new pay plan for CEO RJ Scaringe worth up to $4.6 billion over the next decade, which is linked to performance targets and is modeled after Tesla's CEO Elon Musk's compensation package [1][2][4]. Group 1: CEO Compensation Plan - The new compensation plan for CEO Scaringe includes options to purchase up to 36.5 million shares of Rivian's Class A stock, which is approximately 16 million more than the previous grant, at an exercise price of $15.22 per share [6]. - The plan aims to retain the founder and keep him focused on growth and profitability as Rivian prepares to launch its more affordable R2 SUV next year [3][4]. - The revised plan has lower performance goals compared to the previous one, which the board deemed unlikely to be met [3]. Group 2: Industry Implications - Rivian's move reflects a trend among companies to adopt compensation structures similar to Tesla's, tying significant CEO rewards to ambitious market performance goals [2][5]. - The compensation strategy is seen as a way to inspire growth and profitability, although it may pose challenges for leaders to meet targets amid changing economic conditions [5].