EV maker Rivian follows Tesla’s model with Elon Musk-style $4.6 billion pay package for CEO

Electric vehicle maker Rivian has announced a compensation plan for CEO RJ Scaringe worth as much as $4.6 billion over the next decade. This follows the model established by Tesla CEO Elon Musk's record pay package and linking rewards to new profit targets and lower share price milestones than a previous deal. Rivian's pay package for Scaringe may rank among the richest in corporate history, depending on performance goals achieved.Under the new plan, Scaringe is receiving options to purchase up to 36.5 million shares of Rivian's Class A stock, approximately 16 million more than the previous grant, at an exercise price of $15.22 per share, according to a Securities and Exchange Commission filing. This pay award will only be given to the CEO if the company meets two main sets of goals:Rivian's stock price must reach certain reduced milestones, ranging from $40 up to $140 per share, over the next 10 years.The company must also hit new targets for its operating income and cash flow over the next seven years.If Rivian hits all milestones, Scaringe will receive up to $4.6 billion, including the costs of exercising options, according to Reuters. Rivian said shareholders will gain $153 billion in value.Last week, Tesla shareholders approved a record $1 trillion pay package for CEO Elon Musk based on operational and valuation milestones over 10 years.Rivian said the plan will retain its founder and keep him focused on growth and profitability as the automaker, known for its R1S SUVs and R1T pickups, prepares to launch its smaller, more affordable R2 SUV next year. The R2 will compete with Tesla's best-selling Model Y crossover.Rivian's board also doubled Scaringe's base salary to $2 million, saying the changes were made with input from an independent compensation consultant and designed to better align pay with shareholder returns.Separately, Scaringe was granted 1 million common units in Mind Robotics, a newly formed Rivian spinoff with external funding developing industrial AI technology.