New York: US-based electric vehicle maker Rivian Automotive has approved a record-breaking $4.6 billion pay package for its founder-CEO RJ Scaringe, as the company looks to recover lost ground, especially as Chinese EV makers dominate the global markets. This announcement comes a day after Tesla’s CEO Elon Musk received a multi-billion-dollar pay rise, ostensibly for the same reason.
The massive payout is tied to hope for better days- it’s tied to performance and profitability milestones for Rivian over the next several years. According to the company’s filings, Scaringe will receive the stock options worth $4.6 billion only if Rivian’s stock manages to reach $140 per share.
Following the news, netizens had a field day comparing Scaringe with Musk, and the need for such a package.
EV maker Rivian gives CEO a Musk-style pay package worth up to $4.6 billion
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“If the payout were less than $4.6 billion (say 1/10 of that), would the incentive to succeed be that much less? These massive payouts, a la Elon, just has a strange vibe (which is also dilutive to other shareholders),” one Redditor said in a viral thread.
“Who needs that much money and how does human incentive change possible behavior in a 24hr day with these numbers? It’s ridiculous.
You can only wipe your ass with one hand at a time. Tie your shoes one shoe at a time. Do they think he should be afforded the cost of house staff that wipes his butt and ties his shoes?,” another wondered.
Meanwhile, the company justified the revised pay package, stating that the earlier goals were ‘unlikely’ to be attained.
“Rivian shareholders will see an approximate $32 billion of return before RJ sees $1 from this award.” a Rivian spokesperson Marina Hoffmann, said in a statement to Business Insider.
The EV startup has been pinning its hopes on the coming launch of its R2 SUV, which aims to lower the price of premium SUVs with its $45,000 price tag.
The company has reported a 78% year-on-year increase in revenue this year, but that hasn’t been enough as its losses have mounted to $1.1 billion for the third quarter.
