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Rivian Replaces 2021 CEO Award With Up to $4.6 Billion Performance-Vested Options

The board tied RJ Scaringe’s potential payout to share‑price and profit hurdles to keep him through the R2 rollout.

Overview

  • The new package grants options for up to 36.5 million shares at a $15.22 strike, with vesting split between stock-price milestones and multi‑year operating income and cash‑flow targets.
  • About 22 million options vest in 11 tranches as the stock reaches $40 to $140 over a decade, while 14.5 million options depend on hitting financial targets through 2032.
  • Rivian canceled Scaringe’s 2021 performance award tied to share‑price hurdles of $110 to $295, saying those targets were unlikely to be met.
  • The company values the award at roughly $4.55–$4.6 billion including exercise costs and says shareholders would see about $32 billion of returns before any payout and around $153 billion if all milestones are achieved.
  • Scaringe’s base salary rises from $1 million to $2 million, the grant is issued under Rivian’s existing 2021 equity plan without a new shareholder vote, and he receives 1 million units in Mind Robotics with a potential 10% economic interest and a chair role.