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Rivian Overhauls CEO Pay With New Options Tied to Stock and Profit Milestones

The board framed the deal as a retention tool for the R2 scale‑up to accelerate a pivot to profitable operations.

Overview

  • RJ Scaringe received options for up to 36.5 million Class A shares at a $15.22 exercise price that vest only if Rivian meets share‑price thresholds from $40 to $140 over ten years plus operating income and cash‑flow targets measured through 2032.
  • Stock‑price tranches require each level to be maintained for 120 consecutive trading days before vesting can occur.
  • Rivian canceled Scaringe’s 2021 performance award after deeming its goals unlikely to be reached, and the new package does not require a shareholder vote.
  • The board doubled Scaringe’s base salary to $2 million, and the company estimates the new award could be worth roughly $4.6–$5 billion if all milestones are achieved, with an internal projection of about $153 billion in shareholder value creation.
  • Scaringe was granted 1 million units in the Mind Robotics spinoff, conferring up to a 10% economic interest upon profit thresholds, and he will serve as its board chair.