Rivian is offering CEO RJ Scaringe up to $4.6 billion if he hits tough profit and stock price targets over ten years

Rivian said on Friday that its board approved a new pay package for CEO RJ Scaringe that could be worth $4.6 billion over the next ten years, according to ￰0￱ plan links the payout to specific company performance targets and future share-price milestones, and its structure resembles the package that Tesla shareholders approved for Elon Musk, which was previously reported by Cryptopolitan. Rivian’s plan reportedly represents a push to keep Scaringe in place and focused while Rivian, known for its R1T pickup and R1S SUV, prepares to introduce its more affordable R2 SUV next ￰1￱ R2 is intended to compete directly with Tesla’s Model ￰2￱ option structure tied to company performance Under the new package, Scaringe is receiving the right to purchase 36.5 million shares of Rivian Class A stock at $15.22 per share, which will be roughly 16 million shares more than his prior ￰3￱ options will only vest if the stock price reaches several milestones between $40 and $140 per share over the next decade, according to the ￰4￱ addition, the plan requires specific operating income and cash flow achievements within a seven-year ￰5￱ previous pay plan, created in 2021, linked Rivian share price targets to $110 and up to $295 at the high ￰6￱ company canceled that plan because those milestones were unlikely to be ￰7￱ stock closed at $15.22 on Thursday.

A spokesperson said, “The rigorous and challenging milestones associated with this option award are structured in such a way that ensures the options only vest should the company deliver significant value to our shareholders.” If the new package is fully vested, Scaringe could receive $4.6 billion, including the cost of exercising the ￰8￱ estimated that shareholder value could expand by $153 billion if every milestone is ￰9￱ potential payout equals roughly one-quarter of Rivian’s current market capitalization of $18.7 billion and slightly exceeds its $4.4 billion cash balance at the end of ￰10￱ board also doubled Scaringe’s base salary to $2 ￰11￱ board stated that this change was made with advice from an independent compensation consultant and was designed to align compensation with shareholder ￰12￱ of Tesla and Musk’s compensation template Tesla shareholders recently approved a $1 trillion performance-linked compensation plan for Elon ￰13￱ plan has drawn attention for tying executive reward to company growth rather than time-based ￰14￱ Assayag, a partner at ClearBridge Compensation Group, said, “While Rivian may not be a direct copycat, there are definitely Elon Musk characteristics that are similar.” She said some companies have contacted her firm seeking similar structures.

“It’s not to keep up with Musk, but inspired by Musk’s award.” Beyond the stock plan, Scaringe was also granted 1 million common units in Mind Robotics, a new Rivian-affiliated spinoff focused on industrial AI ￰15￱ units could provide Scaringe with up to a 10% economic interest once the business surpasses a profit ￰16￱ will serve as chairman of Mind Robotics’ board of ￰17￱ retains a shareholder position in the ￰18￱ company shared details about the spinoff earlier this ￰19￱ up to Bybit and start trading with $30,050 in welcome gifts