Rivian CEO Secures $4.6 Billion Elon-Style Rivian CEO Pay Package

Rivian CEO Secures $4.6 Billion Elon-Style Rivian CEO Pay Package

A new Rivian CEO pay package valued at a potential $4.6 billion has been awarded to founder and CEO, RJ Scaringe. This massive, performance-based Rivian CEO pay package is designed to retain Scaringe for the next 10 years and is heavily dependent on the successful launch of the upcoming R2 mid-size SUV and significant stock price growth. The deal, which replaces a previous $6B plan from 2021, highlights the company’s belief that Scaringe’s leadership is crucial as it navigates a challenging EV market.

No Sales, No Stock Options: A Performance-Based Payout

Rivian’s board has structured the new Rivian CEO pay package to align directly with the company’s long-term success, specifically the production and sales of its smaller, soon-to-be-released R2 mid-size SUV and subsequent models like the R3.

• New Salary & Options: Scaringe’s base salary will increase to $2 million per year, and he will be granted options to purchase up to 36.5 million shares of Rivian’s Class A stock at $15.22 per share.
• Performance Goals: The majority of the $4.6 billion payout is tied to hitting eleven specific stock price goals, ranging from $40 to $140 a share over the next 10 years, as well as new operating income and cash flow targets over the next seven years.
• Replaces Old Plan: This new Rivian CEO pay package replaces a 2021 plan valued at $6 billion, which was contingent on share prices passing $110, $150, $220, and $295—milestones Rivian now recognizes as “unlikely.”
• Shareholder Value: Rivian stated the options only vest if the company delivers “significant value to our shareholders,” projecting “$153 billion of value creation” if all milestones are hit.

Market Context: Tesla Payouts and Rivian Layoffs

The news of Scaringe’s new Rivian CEO pay package comes at a time of significant market turbulence and follows a similar, larger-scale move by its main rival.

• Tesla Comparison: On November 6, Tesla shareholders approved a record $1 trillion pay package for CEO Elon Musk, tied to massive operational goals like 20 million vehicles delivered and 1 million robotaxis.
• Cost-Cutting Measures: In contrast, Scaringe’s compensation, which was not subject to a shareholder vote, comes just after Rivian laid off more than 600 people in October 2025 in its vehicle operations and marketing departments to “profitably scale” itself ahead of the R2 launch.

Rivian’s R2 Strategy

Despite a projected sales dip in Q4 2025 (following a Q3 high of 13,201 sales), Scaringe remains “bullish” on the R2, which is priced to compete directly with the Tesla Model Y.

“With [Tesla] taking up roughly half the market… it’s not a reflection of a healthy market. It’s a reflection of a very underserved market in terms of choice and options,” Scaringe said, emphasizing that the R2 ($45,000 – $50,000 segment) will be “very, very different in terms of the way it’s executed” than the Model Y.

Also Read – Tesla Executives Depart: People Behind Cybertruck and Model Y Leave Tesla