Rivian insiders should buy stock asap to boost employee morale

[SDH]

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.

Buy-backs, special dividend are basically the same thing. As someone posted earlier, RIVN should never have been $120/share at or around IPO. It was over-valued and yes, many that bought feel hard done by. Bad luck, move on.

I would far rather Rivian execs focus on putting theirs/company $ into making great products (check), ramping production of profitable vehicles (check) and moving closer to sustainable profitability (check). F#*K buybacks! They're not Apple or Shell.

Too many people reading Barron's or listening to Cramer/Motley Fool. Are we talking about investing in shares or the desire to own a cool car?

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[DuoRivians]

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.

True value or scarcity. It doesn't matter. If it signals properly that the stock is underpriced, and that helps to increase the stock price, it'll help employee morale.

 

[NY_Rob]

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.

Yeah.. ^ that!

When I worked for publicly traded companies.. I never looked or was concerned w/their stock prices. I worked and got paid, that kept my morale up

 

[DuoRivians]

Buy-backs, special dividend are basically the same thing. As someone posted earlier, RIVN should never have been $120/share at or around IPO. It was over-valued and yes, many that bought feel hard done by. Bad luck, move on.

I would far rather Rivian execs focus on putting theirs/company $ into making great products (check), ramping production of profitable vehicles (check) and moving closer to sustainable profitability (check). F#*K buybacks! They're not Apple or Shell.

Too many people reading Barron's or listening to Cramer/Motley Fool. Are we talking about investing in shares or the desire to own a cool car?

For the nth time, this isn't Rivian (the company) buying back stock or issuing dividends.

 

[uthatch]

True value or scarcity. It doesn't matter. If it signals properly that the stock is underpriced, and that helps to increase the stock price, it'll help employee morale.

Hmmm...yeah I definitely have my doubts about stock value being tied directly to employee morale.

 

[Count Orlok]

For the nth time, this isn't Rivian (the company) buying back stock or issuing dividends.

how many shares do you own?

 

[DuoRivians]

Yeah.. ^ that!

When I worked for publicly traded companies.. I never looked or was concerned w/their stock prices. I worked and got paid, that kept my morale up

And what happens when competitors start to smell blood and try to start poaching Rivian employees in mass?

 

[DuoRivians]

how many shares do you own?

I don't. But, I've seen many many times in my career, where once competitors smell blood, they offer great packages to "steal" employees fast. Once a company loses a good number of key people, it becomes a rapid tipping point. More people leave, more loss of confidence, more people leave, etc.

 

[uthatch]

And what happens when competitors start to smell blood and try to start poaching Rivian employees in mass?

Rivian is free to do the same. Again, I do not see how stock value would counter this. Stock options are typically only an aspect of overall compensation.

 

[DuoRivians]

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.

RJ did it in May 16, 2022. It put a floor on the stock price for a while. (Until Ford sold in mass and $tsla dragged down the entire EV sector in Dec 2022).

https://www.sec.gov/Archives/edgar/data/1874178/000120919122029121/xslF345X03/doc4.xml

 

[COdogman]

Yeah.. ^ that!

When I worked for publicly traded companies.. I never looked or was concerned w/their stock prices. I worked and got paid, that kept my morale up

Obviously you want the company you work at to do well, but I always looked at that stuff as totally out of my control so why worry about it.

 

[DuoRivians]

Rivian is free to do the same. Again, I do not see how stock value would counter this. Stock options are typically only an aspect of overall compensation.

With the exception of possibly Lucid, there isn't anyone else that Rivian is in a competitive position to poach from.

Edit: if employees feel that their vested/vesting options are going to materially increase in value if they stay with the firm, they stay. Remember, if you leave, you lose all unvested options.

 

[SDH]

how many shares do you own?

Yeah, exactly. That's what I was thinking. And did that someone pay over $100/share???

 

[DuoRivians]

Yeah, exactly. That's what I was thinking. And did that someone pay over $100/share???

If you're wondering if I'm speaking my own book, no. But I am going to own a Rivian truck and SUV, and want the company to succeed.

 

[NashvilleR1S]

Im with the original poster EVERYONE GO BUY LOTS OF RIVN STOCK FOR MORALE AND NOT BECAUSE I OWN A LOT AND IT HURTS

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