Rivian Automotive has approved a new $4.6 billion pay package for its CEO and founder RJ Scaringe, echoing Elon Musk’s record-breaking Tesla plan. The deal ties Scaringe’s rewards to Rivian’s stock performance and profitability over the next decade, as the company seeks to strengthen its position in the competitive electric vehicle (EV) market.
The updated compensation package includes options to buy 36.5 million shares at $15.22 per share — the company’s closing price on Thursday. These will vest if Rivian’s stock reaches milestones between $40 and $140 and if the firm meets operating and cash flow goals by 2032.
The new plan replaces a 2021 grant tied to higher share targets that Rivian deemed “unlikely to be met.” The EV maker, known for its R1T pickups and R1S SUVs, is cutting costs amid weaker sales caused by the rollback of U.S. EV tax credits.
Rivian’s board said the plan was designed “to retain Scaringe and align his incentives with long-term shareholder value.” His base salary was doubled to $2 million, and he also received equity in Mind Robotics, a Rivian spinoff developing industrial AI technologies.
Analysts say the deal reflects how Musk’s Tesla package has inspired other fast-growing companies to link executive compensation to market expansion. “It’s not to keep up with Musk, but inspired by Musk’s award,” said Yonat Assayag of ClearBridge Compensation Group.
If all goals are met, Scaringe could earn up to $4.6 billion, while Rivian estimates shareholders could gain $153 billion in value.
