Rivian CEO RJ Scaringe Receives Musk-Style Pay Package Worth Up to $4.6 Billion

Rivian has approved a new long-term compensation plan for CEO RJ Scaringe valued at up to $4.6 billion over the next decade, mirroring the performance-driven structure of Elon Musk’s record Tesla award. The package ties Scaringe’s rewards to ambitious profitability and share price milestones as Rivian prepares to scale its next-generation electric SUV lineup.

Stock-based rewards link Scaringe’s future to Rivian’s growth

Under the plan, Scaringe can purchase up to 36.5 million shares of Rivian’s Class A stock at an exercise price of $15.22, roughly matching the company’s current trading level. The options will vest only if Rivian’s stock price rises between $40 and $140 per share over the next decade and if new operating income and cash flow targets are met within seven years.

Rivian’s previous 2021 compensation plan, which required the stock to reach $110 to $295 per share, was canceled after those targets proved unrealistic. At Thursday’s close, Rivian shares stood at $15.22, giving the EV maker a market value of $18.7 billion. Analysts currently peg its one-year median price target at around $14, according to LSEG data, according to CNBC.

The potential payout equals roughly one-quarter of Rivian’s market capitalization and slightly exceeds its $4.4 billion cash balance. The company’s board also doubled Scaringe’s annual base salary to $2 million, saying the plan was built with input from independent compensation consultants and designed to align leadership incentives with shareholder value creation.

Inspired by Musk, Rivian aims to tie reward to performance

Rivian’s updated compensation plan echoes the structure of Tesla’s $1 trillion performance award for Elon Musk, which shareholders reaffirmed last week. Industry experts say Rivian’s approach signals how Musk’s model has become a blueprint for other fast-growing automakers seeking to retain founders while fueling long-term growth.

“The rigorous and challenging milestones associated with this option award are structured in such a way that ensures the options only vest should the company deliver significant value to our shareholders,” Rivian said in a statement.

Beyond the equity award, Scaringe was also granted 1 million common units in Mind Robotics, a Rivian spinoff developing industrial AI technology, giving him up to a 10 percent stake once profitability thresholds are reached. He will serve as chairman of Mind Robotics’ board as Rivian continues to explore AI-driven business opportunities tied to its EV platform.

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