CEO RJ Scaringe gets $403M Pay Package

[DuoRivians]

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.

Unless RIVN memes like TSLA does, I don’t think this stock is going anywhere, in part due to future dilutions, which includes potential RJ’s new shares.

And large shareholders do, in fact, care about proper corporate governance

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[SDH]

Unless RIVN memes like TSLA does, I don’t think this stock is going anywhere, in part due to future dilutions, which includes potential RJ’s new shares.

And large shareholders do, in fact, care about proper corporate governance

Don't know that first point actually means ... "RIVN memes like TSLA does" ??? Sounds like something some born after 2001 would say.

Second point ... you literally made my point for me. Shareholders HAVE voted for this pay. They are FOR it. You and your 3 shares might not be, but the big institutions who own large chunks and command face time with RJ and the Board, HAVE approved this. They think it is a good idea to reward him. Their opinion/vote counts for more.

Time will prove whether they are 'correct'. Who knows, lets all loop back in 5 yrs time re-opne this thread.

 

[DuoRivians]

Don't know that first point actually means ... "RIVN memes like TSLA does" ??? Sounds like something some born after 2001 would say.

Second point ... you literally made my point for me. Shareholders HAVE voted for this pay. They are FOR it. You and your 3 shares might not be, but the big institutions who own large chunks and command face time with RJ and the Board, HAVE approved this. They think it is a good idea to reward him. Their opinion/vote counts for more.

Time will prove whether they are 'correct'. Who knows, lets all loop back in 5 yrs time re-opne this thread.

Shareholders have not voted for RJ’s comp. The board just gave it.

This same issue was why shareholders sued Elon, and the Board had to create a new comp package and have shareholders vote on it explicitly.

 

[AlphaSnowbordergirl]

I personally don't have much problem with it. He actually made the company. Very few large company CEOs can say that. Most of his pay is stock in the company he built. Elon bought Tesla, he didn't build it from the ground up. He also took on roles of marketing director on top of CEO to promote Rivian non-stop. His actual salary is 2 million. Giving him stock of a company he built is fine. However, I will say billionaires shouldn't exist as I believe one shouldn't horde wealth. So, I wouldn't want RJ getting much more than this wealth wise. RJ works hard and is everywhere so I don't mind it too much.

 

[SANZC02]

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?

Seems like there is more to it than stock price…

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

I’m not going to argue about income inequity, especially on a forum where people are buying 100k dollar vehicles.

 

[SDH]

I will say billionaires shouldn't exist as I believe one shouldn't horde wealth.

My final point before I tap out and make myself more unpopular with you nice folks...

Let's not let the 'theory of relativity' (ie they have more than me) cloud our judgement. I reckon most billionaires still pay a decent chunk of tax somewhere. Probably more than all of us on this fourm combined. Perhaps a smaller proportion of their wealth but they're just following lax rules.

Then think of the people they employ. How many folks does AMZN, Meta, Google, NVDA, MSFT employ and give benefits, as well as a purpose to?

Now think about the employees of all those who make, market and sell supercars, private jets and yachts.

Then consider those who give money away today to good cuases and those who have pledged to give a shit load away and consider what you've given to charity.

Just saying. They ain't all as bad as we like to think.

Comparison is the thief of joy.

Bon nuit.

 

[DuoRivians]

Seems like there is more to it than stock price…

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

I’m not going to argue about income inequity, especially on a forum where people are buying 100k dollar vehicles.

It’s not income inequality. It’s what amount RJ gets to keep versus rest of shareholders

 

[mkennedy009]

Wow this is devolving...I wonder if it was like this when the rail roads were starting out. Just on a smaller, non-internet basis.
Look at the rail roads now. Consolidate and almost a giant monopoly. Like MLS, NBA, NFL. All those good not for profit outlets. Sorry, I digress.

 

[Hereforthesnacks]

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

Issue is, you may have a better chance at the company performing with a different CEO.

 

[Hereforthesnacks]

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?

Amazon has made investors rich. Rivian has cost them $$$.

 

[mkhuffman]

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

@SDH and @Hillbilly have clearly pointed out you are wrong. But I want to address your comment #1 above, which you are also clearly wrong about.

All shareholders have the same opportunity given to RJ. I purchased right after the IPO at around $115 a share. That was my stupidity, but I was excited and emotion ruled my decision making process. When the stock crashed to $10, I bought more. Now my average purchase price is around $65. I can still buy more now. As can you.

Did you know there is a thing called the stock market and you can now buy shares of RIVN at around $16 a share? Just like RJ? WTH are you really complaining about? The fact that he actually built something of tremendous value at a level you and I can only dream about? Why shouldn't he be rewarded for that? Seriously. Jealousy of those who are more successful is really infuriating.

 

[Dark-Fx]

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

A silly argument. You can "reset" your holdings by buying more stock today.

 

[Hereforthesnacks]

A silly argument. You can "reset" your holdings by buying more stock today.

Ok, but, you know - the CEO doesn’t have to pay to “reset” his holdings

 

[TexasBob]

I've written this before but RJ gets well over a billion in compensation for literally delivering a less than zero percent return for his shareholders. That is not pay for performance that is cronyism. He will be made a multi billionaire if he delivers for his shareholders less than they would have earned by putting their money in an FDIC insured savings account.

Say what you want about Elon (and I have plenty of negative things to say) but at least he got paid for creating huge value for his shareholders. RJ gets paid billions for showing up and losing them money. I have nothing against billionaires but you actually have to generate shareholder value and take risk before you deserve to become one. RJ has done neither.

 

[Zoidz]

I may have a fuzzy memory, and I'm not going back to look, but as I recall when RJ's comp plan was discussed here years ago, it was supported by almost everyone. Now, there are a lot more naysayers. Hmmm.....

Shareholders knew, or should have known, what the comp plan looked like before buying the stock, and certainly knew the risk. Therefore, I don't care much about "the shareholders are getting screwed" opinion. Yes, I'm a shareholder - IPO and post IPO. I don't feel like I'm getting screwed - I chose to play in the game and I take full ownership of my decisions, not blaming or whining.

RJ took the risks for the past 15+ years to get to this point, and the comp package still has years to go before it pays out, if ever.

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