Electric vehicle manufacturer Rivian imitates Tesla's compensation model, proposing a $4.6 billion incentive plan for the CEO

AASTOCKS
2025.11.07 22:04

After Tesla (TSLA.US) CEO Elon Musk received shareholder approval for a $1 trillion compensation plan, its competitor, American electric vehicle manufacturer Rivian (RIVN.US), announced on Friday that it would follow suit by establishing a compensation plan worth up to $4.6 billion for CEO and founder RJ Scaringe, linking rewards to the company's profitability and stock performance over the next decade.

Rivian stated that Scaringe will receive options to purchase up to 36.5 million Class A common shares at an exercise price of $15.22 per share, which is approximately 16 million shares more than his previous award. The options will vest in stages over the next ten years, contingent on the company's stock price reaching various target milestones between $40 and $140 per share, as well as achieving new operational revenue and cash flow metrics over the next seven years.

Rivian emphasized that this compensation reform aims to ensure Scaringe continues to lead the company, focusing on driving growth and profitability. The company is known for its R1S SUV and R1T truck and plans to launch a smaller, more affordable R2 SUV next year

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