Rivian (NASDAQ: RIVN | RIVN Price Prediction) CEO RJ Scaringe made $403 million last year. Given the EV company’s financial results and the fact that the stock is down to the point it has ruined the investment of long-term shareholders, that seems excessive.
Scaringe received $373.5 million in option awards, more than $26.6 million in stock awards, and about $1.12 million in salary, according to the Rivian proxy. The compensation committee of Sanford Schwartz (Chair), Karen Boone, and Jay Flatley should be fired (or voted off the board).
To make the entire amount, Scaringe has to hit several financial targets and meet stock-market price hurdles.
Another staggering number is that his pay was 4,458.1 times the median pay of Rivian workers. These workers should at least be puzzled.
Rivian’s stock prices are horrible by any measure. It is down year to date by 15%, about flat with the S&P 500 over the last year, and down 87% over the last five years.
What makes the pay package harder to defend is the company’s financials, vehicle production, and delivery. Last year, Rivian manufactured 42,284 vehicles and delivered 42,247
In the final quarter of the year, revenue rose from $1.3 billion to $1.7 billion. Rivian had a net loss of $800 million compared to $743 million in the same period a year ago. Even worse, during the course of the year, Rivian lost $3.6 billion, compared to $ 4.7 billion in 2024.
Rivian has made several “soft” deals. Uber (NASDAQ: UBER) will buy up to 30,000 of its vehicles (up to), and VW will invest up to $5.8 billion (up to). There is a chance that neither of these deals works out.
Scaringe’s is an insult to shareholders and employees.
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