RJ Scaringe gets new pay package worth up to $4.6 billion

[TexasBob]

Uh... no. If RJ hits his $4.6 Billion goal he will have delivered a zero percent return to the shareholders who bought his stock on IPO day. The Value of RIVN on the first day of trading after IPO was $150B (HIGHER than RJ's new target). If you would rather take the lower initial IPO price and give RJ full benefit of the doubt, then it is a meager 4.33% annual return if he hits his $143 B valuation target by 2035.

Any janitor sweeping the Normal factory could do better by merely stuffing this into a run of the mill high yield savings account that is FDIC insured ... with zero risk and zero volatility. In what economic system does it make sense for a CEO to get paid $4.6B to deliver vastly lower returns than any neophyte can get from the local bank???

Say what you want about Elon the Awful (and he IS awful), at least he delivered significant shareholder value. All RJ has done is destroyed $130 Billion in shareholder value since IPO day.

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[BigSkies]

This^^^^^^ 100%

We all have our own opinions on Musk;s packages but Tesla never reduced and reset the target. He met all the first set that no one thought he would. Now the new set that are just as difficult if not harder than before.

As a $TSLA shareholder, I voted for and am glad there is a huge stretch goals for Musk to hit. As a $RIVN shareholder, I am not at all happy to see Rivian lower RJ's expectations and goals.

I would have love to see and supported the incentive compensation increase for RJ, if the targets were INCREASED, and not what they did.

Let's not kid ourselves. If Tesla stock takes a massive fall, the Tesla board will move the goalposts for Elon's pay package in a heartbeat.

That's one of several reasons I hate these types of pay packages. They pay out massively if things go well, and they get reset to still pay out massively when they don't. Consistently.

I honestly think shareholders would be better off if we went back to a base salary and a small amount of stock. The stock awards are just too big and don't practically align incentives any better than a regular salary would.

 

[TerryInHouston]

- I am a Free Economist - I don't believe CEOs should have to give up their pay for SNAP benefits and Obama Snare ...

If bright minds or great ideas can't make money - they won't do it - then we are Venezuela and Afghanistan.....

As to RIVN - I pitty the fools buying the stock

 

[R2dreamer]

Edit: I'm removing Admin changes to my original post, I originally only provided link, a single quote, and "suspicious Doakes gif".

https://www.reuters.com/sustainabil...455-billion-with-new-profit-stock-2025-11-07/

"While Rivian may not be a direct copycat, there are definitely Elon Musk characteristics that are similar,"

I have no problem with this. The guy has work his ass for what 11 years to get to this point? He has built an excellent team, got a factory going with another on the way, etc. etc. If he hits the milestones the shareholders get $153B and he gets 3% of that at $4.6B.

 

[Riviot]

The Value of RIVN on the first day of trading after IPO was $150B

Actual target value at IPO ($78/share) was $66.5B*. What people paid each other on the market... Another story.

https://markets.businessinsider.com...zon-ev-startup-66-billion-trading-debut-tesla

*Corrected, thanks @kurtlikevonnegut

 

[COdogman]

- I am a Free Economist - I don't believe CEOs should have to give up their pay for SNAP benefits and Obama Snare ...

If bright minds or great ideas can't make money - they won't do it - then we are Venezuela and Afghanistan.....

As to RIVN - I pitty the fools buying the stock

 

[kanundrum]

If the company performs and the stock performs equally, I don't see a problem. But more so he's not a piece of crap human being so I'd imagine a lot of that would go to a lot of foundations for environmental projects as that's his big passion.

 

[R2dreamer]

Uh... no. If RJ hits his $4.6 Billion goal he will have delivered a zero percent return to the shareholders who bought his stock on IPO day. The Value of RIVN on the first day of trading after IPO was $150B (HIGHER than RJ's new target). If you would rather take the lower initial IPO price and give RJ full benefit of the doubt, then it is a meager 4.33% annual return if he hits his $143 B valuation target by 2035.

Any janitor sweeping the Normal factory could do better by merely stuffing this into a run of the mill high yield savings account that is FDIC insured ... with zero risk and zero volatility. In what economic system does it make sense for a CEO to get paid $4.6B to deliver vastly lower returns than any neophyte can get from the local bank???

Say what you want about Elon the Awful (and he IS awful), at least he delivered significant shareholder value. All RJ has done is destroyed $130 Billion in shareholder value since IPO day.

I don’t think it is his fault that in those headier days of EV companies going public, the market overshot the mark. This happens with many hyped sectors IPOs.

 

[Riviot]

- I am a Free Economist - I don't believe CEOs should have to give up their pay for SNAP benefits and Obama Snare ...

If bright minds or great ideas can't make money - they won't do it - then we are Venezuela and Afghanistan.....

As to RIVN - I pitty the fools buying the stock

Please keep your politics off the forum, that's how these threads get shut down. Keep the comments to gifs and hating on Cybertrucks

I have no problem with this. The guy has work his ass for what 11 years to get to this point? He has built an excellent team, got a factory going with another on the way, etc. etc. If he hits the milestones the shareholders get $153B and he gets 3% of that at $4.6B.

I have no opinion on the compensation package, just providing another data point of Rivian/RJ doing Tesla type things.

 

[R2dreamer]

- I am a Free Economist - I don't believe CEOs should have to give up their pay for SNAP benefits and Obama Snare ...

If bright minds or great ideas can't make money - they won't do it - then we are Venezuela and Afghanistan.....

As to RIVN - I pitty the fools buying the stock

I have a buy order in right now at below market. Hopefully I will get it as I believe the R2 and R3 are going to sell very well. Enough so that they become profitable next year.

 

[mkg3]

If the company performs and the stock performs equally, I don't see a problem. But more so he's not a piece of crap human being so I'd imagine a lot of that would go to a lot of foundations for environmental projects as that's his big passion.

...wow, that's a real stretch and reading into what someone you no nothing, personally would do..

Public persona and personal actions are two very different things.

 

[mkg3]

Let's not kid ourselves. If Tesla stock takes a massive fall, the Tesla board will move the goalposts for Elon's pay package in a heartbeat.

I disagree with this statement. I do not believe Tesla would not move the goal post lower nor would shareholder approval it, since the package requires shareholder votes.

I honestly think shareholders would be better off if we went back to a base salary and a small amount of stock. The stock awards are just too big and don't practically align incentives any better than a regular salary would.

Completely false. Without incentives, none of the CEOs of successful companies would perform to way they are. The position is NOT participation trophy and without significant challenges, these companies would have accomplished what they have.

 

[DuoRivians]

I have a buy order in right now at below market. Hopefully I will get it as I believe the R2 and R3 are going to sell very well. Enough so that they become profitable next year.

Rivian needs to sell a minimum of 400K vehicles at average price of $50K, along with really optimistic software revenue, to have a chance of operating profitability.

There’s no way this has a chance until GA plant is complete.

 

[R2dreamer]

Rivian needs to sell a minimum of 400K vehicles at average price of $50K, along with really optimistic software revenue, to have a chance of operating profitability.

There’s no way this has a chance until GA plant is complete.

I think your numbers are way off. With 50k R2 and R1s hitting 75%of the 2025 deliveries they should be marginally profitable on A GAAP basis in 2026.

 

[kanundrum]

...wow, that's a real stretch and reading into what someone you no nothing, personally would do..

Public persona and personal actions are two very different things.

Met him, he's cool people but you are correct he could kill puppies in the weekend we don't really know

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