CEO RJ Scaringe gets $403M Pay Package

[DuoRivians]

Keep plugging away for wealth redistribution instead of supporting innovation and wealth creation. You do it non-stop every chance you get here. I just wanted to post to make sure you knew you aren't in your own private echo chamber. Reddit is super receptive if that kind of stuff.

You seem to not understand that as soon as Rivian raised $12 billion in public money, shareholders have a right in the company and that Rivian is a *public* company. This isn’t about wealth distribution—it’s about shareholders.

If Rivian had never raised public money, then whatever,

And keep in mind, how much has Rivian lost every year?

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[Hillbilly]

You seem to not understand that as soon as Rivian raised $12 billion in public money, shareholders have a right in the company and that Rivian is a *public* company. This isn’t about wealth distribution—it’s about shareholders.

If Rivian had never raised public money, then whatever,

And keep in mind, how much has Rivian lost every year?

Christ, at least I'm not going to chatgpt to write a reply to defend my position. If you have an issue as a shareholder, voice it or invest elsewhere.

 

[michaelcasto]

Explains why the stock went down further. Its a bit excessive for the CEO of a currently not profitable company.

There goes the stock price staying at 16$ for another year

 

[savethemanual]

Rivian losing money every year is not their long term plan, that's just silly to bring up. You gotta see the forest through the trees sometimes ya know.

 

[skyguyscott]

So, two things.

First, I agree in general that CEO pay in the US is obscene across the board. I refuse to defend or excuse the excessive disparity between the C-suite and the line. I am reminded of Mark Twain who wrote, "I never met a man willing to work for what he was actually worth."

But second, it sounds like RJ is mostly being paid in stocks and options, which aren't "real money" unless and until he sells at whatever valuation they bring.

Yes, of course he probably does the "borrow until you die" tax strategy those of the CEO ilk are so fond of, using the stock as collateral, but until the citizenry of this county wise up and vote the oligarchs and their corrupt lackeys out of office, the robber barons are gonna keep robin' us bare.

 

[VandalSibs]

I think some people are missing the main part of things here.... Since the share price isn't at the minimum value for him to unlock those shares, he hasn't gotten them yet.

Is the whole pay package obscene? On my opinion, yes. But he's not being rewarded via that part of it yet either.

 

[Hereforthesnacks]

Ya’ll can argue all you want. My only point is that I would have waited until we saw the result of the R2 launch. He was stuck at Rivian anyway - 0% chance he would have left.

If the R2 launch went well, they could have designed a package then. And if not, I would have kicked him to the curb.

My - you know, personal opinion, man - has always been that he is an average at best decision maker with below average OPs understanding. The R2 is what will prove that he has or doesn’t have the needed chops. It doesn’t matter that, if the R2 launch fails, he doesn’t get paid. The whole idea is for the the R2 launch to be successful.

 

[SANZC02]

Here Is a breakdown of the package. Seems to be based on pretty lofty goals that if attained would be a win for the stock holders.

The package includes roughly $373.5M in option awards, $26.6M in stock awards, and about $1.12M in base salary. The equity grants make most of the compensation contingent on future milestones.

Rivian’s compensation committee said the structure aims to retain CEO Scaringe and align incentives with shareholders as the company enters its next phase, including scaling production and launching its R2 platform.

The options vest only if Rivian meets a series of ambitious targets tied to stock price, profitability, and cash generation.

Equity tranches linked to share-price hurdles require the stock to rise from $40 to as high as $140 over sustained periods, which is a premium of up to 740% from stock's Monday close of $16.7. Additional portions depend on achieving adjusted operating income and cash flow from operations targets through 2032.

 

[kanundrum]

Here Is a breakdown of the package. Seems to be based on pretty lofty goals that if attained would be a win for the stock holders.

The package includes roughly $373.5M in option awards, $26.6M in stock awards, and about $1.12M in base salary. The equity grants make most of the compensation contingent on future milestones.

Rivian’s compensation committee said the structure aims to retain CEO Scaringe and align incentives with shareholders as the company enters its next phase, including scaling production and launching its R2 platform.

The options vest only if Rivian meets a series of ambitious targets tied to stock price, profitability, and cash generation.

Equity tranches linked to share-price hurdles require the stock to rise from $40 to as high as $140 over sustained periods, which is a premium of up to 740% from stock's Monday close of $16.7. Additional portions depend on achieving adjusted operating income and cash flow from operations targets through 2032.

This! Aka doesn't get it unless the company performs, which everyone wins

 

[DuoRivians]

Here Is a breakdown of the package. Seems to be based on pretty lofty goals that if attained would be a win for the stock holders.

The package includes roughly $373.5M in option awards, $26.6M in stock awards, and about $1.12M in base salary. The equity grants make most of the compensation contingent on future milestones.

Rivian’s compensation committee said the structure aims to retain CEO Scaringe and align incentives with shareholders as the company enters its next phase, including scaling production and launching its R2 platform.

The options vest only if Rivian meets a series of ambitious targets tied to stock price, profitability, and cash generation.

Equity tranches linked to share-price hurdles require the stock to rise from $40 to as high as $140 over sustained periods, which is a premium of up to 740% from stock's Monday close of $16.7. Additional portions depend on achieving adjusted operating income and cash flow from operations targets through 2032.

A couple of things:

1. RJ’s strike price on the options got reset to $15.22, instead of being where it was previously around the ipo price. Whereas public shareholders have no opportunity to “reset” their holdings. Doesn’t seem fair. At least if RJ’s strike remained at previous level, it would be fairer wrt all shareholders

2. Why should the stock price level matter? Introducing this only makes RIVN subject to meme behavior like TSLA shares. Just make the awards dependent on milestones around profitability and such.

3. A matter of degree. Given that any issuance of new shares, whether RSUs or exercised options, come at dilution of shareholders, why is it that this amount of incentives is needed for RJ? For example, would he be any less incentivized with half the reward, which would mean less dilution for shareholders with the same company performance?

 

[Rade]

This is one time where I am going to say: HE EARNED IT! He didn't inherit the company, fall upward through incompetence, was not hired in to shuffle the deck chairs and put a shine on a turd (I am looking at you, Ford, GM and Stellantis). He didn't cave when everyone else was getting squirrley on EV's. He was the #1 cheerleader for Rivian, he beat the bushes to find investors when Ford backed out, He kept the message positive and kept the company momentum moving forward when everyone was doubting him and the product. He DID IT!!! ALL!!! GOOD FOR RJ!!!!

Screw anyone who wants to say otherwise.

 

[SDH]

This ^

 

[SDH]

RJ is the visionary behind this company. He created it and sought help from investors. Those investors made a choice and they might ot might not get a return. That's on them.

No RJ = No Rivian to start with. All those Rivian jobs and all those cool EVs would not exist.

How many here moan about Bezo's pay etc yet love the convenience of Amazon next day delivery or Prime? See where this goes?

 

[DuoRivians]

RJ is the visionary behind this company. He created it and sought help from investors. Those investors made a choice and they might ot might not get a return. That's on them.

No RJ = No Rivian to start with. All those Rivian jobs and all those cool EVs would not exist.

How many here moan about Bezo's pay etc yet love the convenience of Amazon next day delivery or Prime? See where this goes?

If Rivian didn’t raise money from public markets, then no Rivian today either.

But Rivian did, and now shareholders have ownership rights too.

Jensen Huang owns less of Nvidia than RJ would in this comp package.

 

[SDH]

If Rivian didn’t raise money from public markets, then no Rivian today either.

But Rivian did, and now shareholders have ownership rights too.

You are kind of correct and that was my first first point ... no one was 'forced' to buy those Rivian shares. It was a choice (knowing full well you could lose the lot)

Second... your 'voice' as a shareholder is only proportionate to the size of your holding. I would guess that most folks on this forum are very small and insignificant holders. Sure, raise your hand at the AGM and ask a question, but your 0.000000000001% counts for jack shit.

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