Rivian Gives CEO Musk-Style Pay Package Worth Up to $4.6 Billion

Electric pickup and SUV maker Rivian said it was granting its CEO a pay plan worth as much as $4.6 billion over the next decade — a deal similar to Tesla’s record package for CEO Elon Musk — tied to new profit targets and lower share-price milestones than a previous agreement, Abhirup Roy, Akash Sriram, and Ross Kerber reported for Reuters.

Rivian has doubled down on cost-cutting and recently laid off about 600 employees, or 4.5% of its workforce. (Photo: MIT Department of Mechanical Engineering)

The move by Rivian’s board shows that Tesla’s plan for Musk could become a model for companies aiming to grow rapidly.

Rivian’s compensation package for CEO RJ Scaringe could be one of the richest in history, depending on performance goals met.

Rivian said the plan will help retain its founder and keep him focused on growth and profitability as the automaker — known for its R1S SUVs and R1T pickups — prepares to launch next year its smaller, more affordable R2 SUV that will compete with Tesla’s best-selling Model Y crossover.

The Rivian plan replaces one that the board said was unlikely to be achieved, with the new plan setting lower share-growth goals. The removal of key EV tax credits is expected to dampen sales through the rest of this year.

Rivian has doubled down on cost-cutting and recently laid off about 600 employees, or 4.5% of its workforce.

Tesla shareholders on Thursday approved a record $1 trillion pay package for CEO Elon Musk — based on a combination of operational and valuation milestones over 10 years — after the board warned he could leave if the plan was not passed.