News Summary

Rivian has announced a new performance-based stock award for its founder and CEO, RJ Scaringe, potentially worth up to $5 billion. This new package replaces a previous 2021 compensation plan, which was unlikely to be fully realized due to Rivian’s stock performance. Scaringe’s salary is also doubled to $2 million annually, and he receives a 10% stake in Rivian’s spinout, Mind Robotics. The new award is structured to ensure vesting only if the company achieves significant value creation for shareholders, requiring Scaringe to help add $32 billion in company value. The maximum stock options Scaringe can receive under this plan is 36.5 million shares, with milestones tied to stock price increases and financial performance targets.