Rivian insiders should buy stock asap to boost employee morale

[DuoRivians]

I am concerned that the company employees may be losing momentum. Yes, they're working hard. Yes, the company is making improvements. Yes, the company is increasing production/delivery.

But, if the stock price continues to decline, I am concerned employees may think that all that hard work doesn't pay off.

I think Rivian insiders, e.g. RJ, need to buy stock asap to help boost morale.

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[Count Orlok]

I guess I'm old fashioned. Perhaps Rivian should increase pay, benefits, and incentives for employees if morale is a problem (which I have not seen evidence that it is).

 

[DuoRivians]

I guess I'm old fashioned. Perhaps Rivian should increase pay, benefits, and incentives for employees if morale is a problem (which I have not seen evidence that it is).

Rivian has one of the highest stock based comp in the industry. That's their way of increasing employee incentives.

 

[COdogman]

I know if I worked on the factory floor I wouldn’t care too much what the stock price is as long as I’m treated well and paid fairly.

Hell, I don’t work on the factory floor and I don’t much care what the stock price is

 

[uthatch]

I think RJ should just ask Elon to help with one of his wonderfully crafted company emails (particularly the Twitter ones). It would be great fun hearing the heads explode simultaneously on both the Rivian and Tesla forums.

 

[Dark-Fx]

I am concerned that the company employees may be losing momentum. Yes, they're working hard. Yes, the company is making improvements. Yes, the company is increasing production/delivery.

But, if the stock price continues to decline, I am concerned employees may think that all that hard work doesn't pay off.

I think Rivian insiders, e.g. RJ, need to buy stock asap to help boost morale.

Unless I'm getting paid in stock, I generally don't care what the stock price of the company I work at is. What matters is that they have a path to profitability, and insiders are going to have more knowledge about that than anyone else.

Also, Insiders still can't buy today anyway.

 

[DuoRivians]

Unless I'm getting paid in stock, I generally don't care what the stock price of the company I work at is. What matters is that they have a path to profitability, and insiders are going to have more knowledge about that than anyone else.

Also, Insiders still can't buy today anyway.

Yes, they can buy today. Earnings window is over.

 

[DuoRivians]

Unless I'm getting paid in stock, I generally don't care what the stock price of the company I work at is. What matters is that they have a path to profitability, and insiders are going to have more knowledge about that than anyone else.

Also, Insiders still can't buy today anyway.

Everyone, including factory workers, get stock in the company.

 

[Tahoe Man]

Sorry but the real issue was the company was never worth $120B or whatever the ridiculous market cap was during the mania.

 

[Dark-Fx]

Yes, they can buy today. Earnings window is over.

The window is typically not open until 2-3 days after earnings report. But I don't actually know what Rivian allows here so you could be right.

 

[uthatch]

Generally speaking, stock buy-backs only help with investor value. A buy-back will not help with their operational profitability, which is what employees can genuinely contribute to. A stock buy-back also signals that the company has decided that shareholder value is paramount to the company. At this point I'm of the opinion that shareholder value should be secondary to operational viability.
This isn't Apple where there are so many billions in the bank that management can pretty much control and manipulate shareholder value. Personally I'm always a bit skeptical of stock buybacks.

 

[Tahoe Man]

By the time this is all over, employees might be appreciating just to have a job. It's not like the Fed is going to let up on their rate increase campaign because some new EV companies are facing tough times. They want to see wholesale layoffs.

 

[DuoRivians]

Sorry but the real issue was the company was never worth $120B or whatever the ridiculous market cap was during the mania.

The comparable is not when the stock was over $100. The baseline is closer to $20.

Here's Claire's (CFO) option holdings disclosure (750,000 options) where the strike price is $21.72.

https://www.sec.gov/Archives/edgar/data/1890925/000089924321043761/xslF345X02/doc3.xml

 

[DuoRivians]

Generally speaking, stock buy-backs only help with investor value. A buy-back will not help with their operational profitability, which is what employees can genuinely contribute to. A stock buy-back also signals that the company has decided that shareholder value is paramount to the company. At this point I'm of the opinion that shareholder value should be secondary to operational viability.
This isn't Apple where there are so many billions in the bank that management can pretty much control and manipulate shareholder value. Personally I'm always a bit skeptical of stock buybacks.

This isn't Rivian, the company buying more stock. It would be personal purchases by insiders, e.g. RJ using his own money.

 

[uthatch]

This isn't Rivian, the company buying more stock. It would be personal purchases by insiders, e.g. RJ using his own money.

I suppose in that case I would question whether RJ and a cohort would have the means to make a meaningful impact with a purchase. I would also still be as skeptical as the optics of it would suggest simply driving up stock price out of scarcity rather than true value.

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