Rivian ties $4.6B CEO compensation to profit, cash flow and a $140 share price
rivian.com
Rivian unveils a $4.6B, 10-year CEO pay plan tied to profit, cash flow and a $140 share price, aiming to retain its founder as it cuts costs and preps R2 2026.
American electric-vehicle maker Rivian has introduced a new compensation program for CEO Robert Scaringe. The package is valued at $4.6 billion over ten years and hinges on gains in profit, cash flow, and the share price rising from the current $15.22 to $140.
The board’s decision is meant to keep the company’s founder in place and sharpen the focus on profitability. Scaringe’s base salary has been doubled to $2 million. The plan replaces a prior arrangement that was deemed unrealistic, Reuters reports. The structure signals a bet on disciplined execution and long-term results, and the stock-price target sets an undeniably high bar—more a call for a step-change than gradual progress.
Rivian is known for the R1S and R1T, and in 2026 it plans to launch the more affordable R2 crossover, positioned as a rival to the Tesla Model Y. The company has been tightening costs and recently cut about 4.5% of its workforce. With a leaner operation and a lower-priced model on the horizon, the brand is aiming to firm up its place among the new wave of electric automakers.
