Rivian CEO RJ Scaringe gets a new pay package worth as much as $4.6B

Rivian Ties CEO’s $4.6B Pay Package to Growth Targets Through 2034

Rivian’s board has approved a revised compensation plan for founder and CEO RJ Scaringe, linking his earnings to achievable financial milestones over the next decade. The new package replaces an outdated plan deemed unrealistic, offering Scaringe stock-based incentives that could total $4.6 billion if all targets are met—a move meant to secure his leadership amid Rivian’s critical expansion phase.

Key Details of the Revised Package:

• Base Salary Doubled: Scaringe’s annual salary rises to $2 million.
• Stock Options: Grants options to buy 36.5 million shares at $15.22/share—up 16 million shares from his 2021 plan.
• Performance Triggers:
  • Stock Price Milestones: Targets lowered to $40–$140/share (previously $110–$295).
  • Financial Metrics: Operating income and cash flow goals set for the next seven years.
  • Maximum Payout: Reaches $4.6 billion if all goals are achieved, generating $153 billion in shareholder value.

Strategic Context
The shift follows Rivian’s improving financial health, with Q3 2025 showing increased deliveries, revenue, and gross profit. However, the company recently cut 4% of its workforce to streamline operations ahead of the 2026 R2 SUV launch—a $45,000 compact electric SUV poised to rival Tesla’s Model Y.

Scaringe’s Background & Vision
An MIT-trained engineer, Scaringe founded Rivian (originally Mainstream Motors) in 2009, driven by his passion for sustainable outdoor exploration. His leadership steered Rivian through early production hurdles at its Illinois factory, now producing the R1T, R1S, and Amazon EDV vans.

Contrast with Tesla’s CEO Pay
The plan contrasts sharply with Tesla’s $3 trillion compensation package for Elon Musk, approved by shareholders. Unlike Musk, Scaringe is Rivian’s undisputed founder, aligning his incentives with long-term company growth rather than headline-grabbing valuations.

Looking Ahead
With the R2’s launch and a Georgia factory expansion on track, Rivian aims to transition from niche automaker to mass-market contender. Scaringe’s revised pay package underscores investor confidence in his ability to deliver profitability by the decade’s end.