Rivian Automotive said on Friday it has approved a new 10-year compensation plan for Chief Executive RJ Scaringe worth as much as $4.6 billion, in a move mirroring Tesla’s landmark pay package for CEO Elon Musk. The deal aims to retain Scaringe and incentivize long-term profitability as the U.S. electric vehicle maker pushes toward sustained growth.
The plan replaces a previous 2021 package that Rivian said was unlikely to be met, setting lower share price milestones and updated operational targets. Scaringe’s new award includes options to buy up to 36.5 million shares of Rivian’s Class A stock at $15.22 per share. These options will vest if the company achieves stock-price milestones ranging from $40 to $140 per share over the next decade, alongside new operating income and cash flow goals within seven years.
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Rivian, known for its R1S SUV and R1T pickup, said the new plan aligns executive pay more closely with shareholder returns as it prepares to launch its smaller, more affordable R2 SUV next year — a model expected to rival Tesla’s Model Y. The automaker has recently faced pressure from waning EV tax credits and slower sales, prompting job cuts affecting about 4.5% of its workforce and renewed efforts to reduce costs.
The company also doubled Scaringe’s base salary to $2 million and granted him 1 million common units in Mind Robotics, a new Rivian spinoff focused on industrial AI. Scaringe will chair the new company’s board and hold up to a 10% stake once profitability milestones are met.
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Analysts said Rivian’s move reflects a growing trend among growth-focused automakers adopting performance-heavy CEO pay structures modeled after Tesla’s. “While Rivian may not be a direct copycat, there are definitely Elon Musk characteristics that are similar,” said Yonat Assayag, a partner at ClearBridge Compensation Group.
If all targets are met, the plan could deliver Scaringe up to $4.6 billion, while Rivian shareholders could see as much as $153 billion in added value, according to company estimates.
