Rivian CEO RJ Scaringe has been granted a substantial pay raise, coupled with a generous stock award and bonus. The decision was approved by Rivian’s board, emphasizing their confidence in Scaringe’s leadership and the company’s growth trajectory.
According to a regulatory filing on Tuesday, effective immediately, Scaringe’s annual base salary has increased to $1 million, a more than 50% increase from the previous $650,000. Furthermore, his target annual incentive bonus has been increased to 100% of his base salary, up from 50%, effective January 1st. (via StreetInsider)
The significant highlight of this compensation restructure is the stock award presented under Rivian’s 2021 incentive plan. The stock award, amounting to approximately $15 million, combines both stock options and restricted stock units (RSUs).
Both the stock options and RSUs are structured to vest over a span of four years, contingent upon Scaringe’s tenure with Rivian.
On August 25, 2023, the Board of Directors (the “Board”) of Rivian Automotive, Inc. (the “Company”), on the recommendation of the Compensation Committee of the Board (the “Compensation Committee”), approved (i) an increase in the annual base salary of Dr. Robert Joseph Scaringe, the Company’s Chief Executive Officer, from $650,000 to $1,000,000, effective as of August 25, 2023, (ii) an increase in his target annual incentive bonus opportunity from 50% to 100% of his annual base salary, effective as of January 1, 2024, and (iii) a grant of an equity award to Dr. Scaringe under the Company’s 2021 Incentive Award Plan, with an aggregate grant date value of approximately $15 million comprised of 50% restricted stock units (“RSUs”) and 50% stock options, effective as of August 25, 2023.
Rivian recently surpassed market expectations in its second-quarter performance, even increasing its production estimates for the year, reflecting an upward trajectory to 52,000 vehicles.
The automaker has also made some changes to streamline its production lines, eliminating some options that were not as popular as others, including Compass Yellow paint, the 20″ All-Terrain Bright wheels, and the vegan leather interior options.
