Rivian gives RJ Scaringe a new pay package worth up to $5B

Rivian has awarded its founder and CEO, RJ Scaringe, a new performance-based stock option package potentially worth up to $5 billion, contingent on meeting ambitious company milestones. Alongside this, Scaringe’s annual salary has been doubled to $2 million, and he received a 10% stake in Rivian’s spinout, Mind Robotics. This new compensation replaces a 2021 performance award that was canceled due to the improbability of achieving its stock price targets, as Rivian’s shares have largely traded below the necessary thresholds since their IPO. The updated award is structured to incentivize Scaringe to drive significant shareholder value, with vesting tied to stock price milestones ranging from $40 to $140 and operational targets related to adjusted operating income and cash flow. The new package grants Scaringe up to 36.5 million stock options over a 10-year period, which could increase his ownership by about 3%, up from his current approximate 1% stake