In a recent move signaling strong faith in leadership and optimistic growth prospects, Rivian CEO RJ Scaringe has been awarded a substantial pay increase, accompanied by a generous stock award and bonus. The decision, endorsed by Rivian's board, underscores their confidence in Scaringe's stewardship and the upward trajectory of the company.
According to official documentation filed on Tuesday, Scaringe's annual base salary has been elevated to $1 million, marking a notable surge of over 50% from the previous figure of $650,000. Additionally, his target annual incentive bonus has been raised to 100% of his base salary, a substantial increase from the previous 50%, with effect from January 1, 2024.
A pivotal feature of this revamped compensation structure is the stock award bestowed under Rivian's 2021 incentive plan. This stock award, valued at approximately $15 million, encompasses a blend of stock options and restricted stock units (RSUs).
Both the stock options and RSUs are designed to vest over a four-year period, contingent upon Scaringe's continuous tenure with Rivian.
As stated in a formal communication, “On August 25, 2023, the Board of Directors (the ‘Board') of Rivian Automotive, Inc. (the ‘Company'), acting on the recommendation of the Compensation Committee of the Board, greenlit (i) an elevation in the annual base salary of Dr. Robert Joseph Scaringe, the Chief Executive Officer of the Company, from $650,000 to $1,000,000, with immediate effect from August 25, 2023, (ii) an augmentation in his target annual incentive bonus potential from 50% to 100% of his annual base salary, effective starting January 1, 2024, and (iii) a grant of an equity award to Dr. Scaringe under the Company's 2021 Incentive Award Plan. This award carries an aggregate grant date value of approximately $15 million, composed of 50% restricted stock units (‘RSUs') and 50% stock options, with immediate effect from August 25, 2023.”
Recent data reveals that Rivian has outperformed market projections in its second-quarter performance, leading to an upward adjustment of its annual production forecast to 52,000 vehicles.
Furthermore, the automaker has streamlined its production lines, making strategic adjustments by discontinuing certain options that had garnered less popularity. Among the options no longer offered are the Compass Yellow paint, the 20″ All-Terrain Bright wheels, and the vegan leather interior choices.