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Rivian Reworks CEO Pay With Up to $4.6 Billion in Performance Options and Salary Doubled

The board says the package is meant to retain RJ Scaringe through Rivian’s next phase focused on the R2 launch.

Overview

  • Rivian granted RJ Scaringe options for up to 36.5 million Class A shares at a $15.22 strike price, vesting only upon stock milestones of $40 to $140 over ten years and new operating income and cash‑flow goals through 2032.
  • Some stock‑price tranches require the shares to sustain each target level for 120 consecutive trading days before vesting.
  • The compensation committee canceled Scaringe’s 2021 performance award tied to $110–$295 share‑price hurdles, citing the unlikelihood of attainment after the post‑IPO decline.
  • Scaringe’s base salary rises from $1 million to $2 million, and the company said the plan was developed with input from an independent compensation consultant.
  • Rivian said shareholders would realize about $32 billion of value before Scaringe benefits and estimated roughly $153 billion of value creation if all milestones are met; he also received 1 million units in Mind Robotics, a spinoff where he will serve as board chair.