Rivian (RIVN) CEO Scaringe Rakes in $4.6B Payday as AI and EV Ambitions Accelerate
Rivian's top exec just hit the jackpot—$4.6 billion in compensation—while betting big on AI-driven electric vehicles. Here’s why Wall Street is both cheering and rolling its eyes.
The paycheck heard ‘round the auto industry
Scaringe’s windfall comes as Rivian doubles down on AI integration and EV expansion, a move that’s either visionary or desperate—depending on which analyst you ask. The board claims it’s ‘performance-based,’ but skeptics note the timing aligns suspiciously well with the company’s recent liquidity crunch.
Silicon Valley meets Detroit
Rivian’s pushing to out-tech Tesla with AI-powered manufacturing and self-updating vehicles. Meanwhile, legacy automakers are scrambling to match its software-first approach. Too bad investors still care more about delivery numbers than neural networks.
One thing’s clear: in today’s market, nothing juices a CEO’s compensation like slapping ‘AI’ in your investor presentation. Even if your cash burn rate could power a small country.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Scaringe’s base salary has also doubled to $2 million per year, and he has been granted a 10% stake in Rivian’s newest spinoff, Mind Robotics, a venture focused on industrial AI applications.
Also, he has received options to purchase up to 36.5 million shares of Rivian’s Class A stock at an exercise price of $15.22 per share. These options will vest when Rivian achieves specific milestones over the next decade, including a stock price ranging from $40 to $140 and new operating income and cash FLOW targets over the next seven years.
This new package replaces a previous 2021 award that was tied to higher stock price targets (up to $295), which seems unachievable after the stock price fell significantly. The company determined that the previous award’s structure provided a “lack of incentive.”
Why the Big Pay Bump?
The pay raise comes as Rivian is preparing to launch its R2 SUV, a smaller, more affordable model aimed at competing directly with Tesla’s (TSLA) Model Y. The company is also expanding into adjacent markets, including robotics and micromobility, through spinouts like Mind Robotics and ALSO.
The new package is expected to help retain Scaringe and align his incentives with long-term profitability and stock performance. Unlike Tesla CEO Elon Musk’s recently approved $1 trillion pay package, Scaringe’s deal does not require shareholder approval as it falls under Rivian’s previously approved 2021 equity incentive plan.
Is RIVN Stock a Buy or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on RIVN stock based on five Buys, nine Holds, and five Sells assigned in the past three months. Further, the average RIVN price target of $13.31 per share implies 12.61% downside risk.
