Rivian Automotive Inc. has announced a significant increase in Chief Executive RJ Scaringe’s compensation package. In addition to a pay raise, Scaringe will receive a stock award and bonus.
Higher Salary and Incentive Bonus
According to a filing made by Rivian on Tuesday, Scaringe’s annual base salary has been bumped up from $650,000 to $1 million, starting from last Friday. Furthermore, his target annual incentive bonus has been increased from 50% to 100% of his annual base salary, effective January 1st. This is a clear acknowledgement of Scaringe’s contributions to the company.
Stock Award and Vesting
In recognition of his outstanding performance, Rivian has granted Scaringe a stock award under its 2021 incentive plan. The value of this award is approximately $15 million and is divided between stock options and restricted stock units (RSUs). Both the stock options and RSUs will vest over a four-year period as long as Scaringe continues to be associated with Rivian.
Analysts Weigh In
Although Rivian reported better-than-expected second-quarter results recently, the positive news did not adequately impact the company’s stock. Some analysts find themselves torn when it comes to their outlook on Rivian, acknowledging the company’s potential while remaining cautious due to its capital requirements during the production ramp-up phase.
Increased Production Guidance
Despite the mixed feelings from analysts, Rivian remains optimistic about its future. The company has raised its production guidance for the year to 52,000 vehicles, up from the previous estimate of 50,000. This adjustment underscores Rivian’s confidence in meeting rising demand for its electric vehicles (EVs).
Positive Stock Performance
Rivian’s stock has been performing well in the market, with a 21% increase year-to-date. This outpaces the broader market as represented by the S&P 500 index, which has only advanced around 17% during the same period.
RJ Scaringe’s enhanced compensation package reflects Rivian’s commitment to recognizing and rewarding its top talent. With a strong leadership team in place, the company is poised for continued success in the EV industry.