Syed Saif Ul Hassan 
Nov 08, 2025
In a surprising move, likely imitating the US-based electric vehicle (EV) maker Tesla, the electric pickup and SUV manufacturer, Rivian, has announced a massive, Elon Musk-like pay plan for its CEO, RJ Scaringe, worth up to £4.6 billion.
The huge pay package will reportedly be rolled out to the Rivian CEO over the next decade.
According to Reuters, the package mirrors the Tesla board's record deal for Musk. It is linked to new profit targets and lower share-price milestones than in a previous agreement deemed unattainable.
The leading EV maker's plan is designed to retain Scaringe’s leadership as Rivian gears up to launch its more affordable R2 SUV next year, competing directly with Tesla's Model Y.
The new compensation structure includes options for Scaringe to purchase 36.5 million shares at an exercise price of £15.22 each. These options will be offered if Rivian achieves stock-price milestones between £40 and £140 per share over the next ten years, along with operational income and cash flow targets.
Rivian's current plan marks a shift from the earlier one, wherein the pickup maker set much higher, unattainable share price targets.
Rivian's board has also doubled Scaringe's base salary to £2 million to align his compensation with shareholder returns. Moreover, he has been granted 1 million common units in Mind Robotics, a new Rivian spinoff.
The leading automaker's strategy indicates a broader trend among companies adopting Tesla-like executive pay models, incentivising growth and profitability, all amid tight market conditions.
