Electric vehicle maker Rivian has granted its founder and CEO, RJ Scaringe, a new performance-based stock award valued at up to $5 billion if all set goals are met, according to a recent company filing. His annual salary has also been doubled to $2 million, alongside a 10% stake in Rivian’s latest spinout, Mind Robotics. The announcement came just a day after Tesla shareholders approved a record-breaking $1 trillion pay package for Elon Musk, drawing comparisons between the two EV industry leaders.
Rivian’s compensation committee canceled Scaringe’s earlier 2021 performance award, citing the “unlikeliness” of achieving its ambitious stock price targets, which required Rivian’s shares to rise as high as $295 within six years. Since the company’s 2021 IPO, Rivian’s stock briefly surged to $129 before dropping sharply and stabilizing between $10 and $20, rendering the previous award effectively out of reach. The new package, issued under the same 2021 equity incentive plan, aims to reinvigorate Scaringe’s motivation amid the company’s next phase of growth.
In its statement, Rivian said the revised compensation structure was designed to “retain and incentivize” Scaringe as he leads the company into its “critical next phase,” including advancing its technology roadmap and launching the R2 model. The automaker emphasized that the new award ensures Scaringe will only benefit financially if Rivian delivers “significant value” to shareholders. The company noted he would earn nothing from the package until Rivian adds $32 billion in value and could ultimately generate $153 billion for shareholders if all milestones are achieved.
Under the new deal, Scaringe could gain up to 36.5 million shares over the next decade, potentially increasing his ownership stake by about 3%. Around 22 million shares are tied to stock price milestones—beginning at $40 per share and rising in $10 increments up to $140—while the remaining 14.5 million shares depend on Rivian meeting key operating income and cash flow targets. Scaringe, who currently owns roughly 1% of Rivian after a divorce-related transfer, must pay $15.22 per share to exercise the options if all targets are met.