Rivian Automotive (RIVN) traded at a 52-week high after the board recently approved a new CEO pay package for RJ Scaringe that could be worth up to $4.6 billion over the next decade. The package is performance-linked similar to the deal that Elon Musk locked down at Tesla (TSLA). Though much smaller in scale than Musk’s, the pay package for Scaringe is one of the largest in the auto sector.
The main component of the package is performance-based stock option that allow Scaringe to purchase up to 36.5 million Rivian (RIVN) shares at $15.22 per share. The stock options vest over 10 years and are tied to both stock price milestones (ranging from $40 to $140 per share) and financial performance goals, including operating income and cash flow targets over seven years.
Barclays analyst Dan Levy called the pay package a positive development for Rivian (RIVN), though he noted he would prefer milestones that are better balanced between share price and fundamentals.
Looking further down the road, BNP Paribas Equity Research analyst James Picariello continue to expect the 2026 R2 launch to position the Rivian (RIVN) to thrive in a less competitive North American landscape as incumbent OEMs scale back electric vehicle investments and incentives. “We remain strongly constructive on liquidity tied to both the VW JV & RIVN’s $6.6B DOE ATVM loan, releasing next yr.,” he wrote.
Shares of Rivian (RIVN) were up 5.2% in Tuesday afternoon trading and are now up 33% over the last six weeks.