June 23, 2024

Rivian Automotive Inc‘s RIVN board of administrators has authorized a significant pay increase for CEO RJ Scaringe.

What Occurred: The board authorized a hike within the CEO’s annual base wage to 1,000,000 {dollars} on Aug. 25, efficient instantly, the corporate mentioned in an SEC submitting on Tuesday. The brand new wage marks an over 50% soar from his earlier base pay of $650,000.

Additional, the CEO has additionally been granted inventory awards of roughly $15 million beneath the corporate’s 2021 Incentive Award Plan. This consists of each restricted inventory models and inventory choices, structured to vest over a 4-year interval topic to Scaringe’s continued service.

Beginning January 1, the CEO may also see a rise in his goal annual incentive bonus alternative from 50% to 100% of his annual base wage.

Why It Issues: The rise in wage comes as Rivian is searching for to scale manufacturing to deal with its actually lengthy backlog and the largest buyer criticism of wait time related to getting a Rivian.

Throughout the second quarter, Rivian produced extra R1S fashions as in comparison with R1T. The R1S is priced increased than the R1T and can also be extra worthwhile. The sample will proceed for the subsequent one or two quarters, the CEO knowledgeable throughout the firm’s second-quarter earnings name final month.

Speaking in regards to the backlog at hand, Scaringe had mentioned that the corporate is ‘very assured’ in its continued backlog which it sees increasing nicely into 2024. “We’re fairly bullish on the continued sturdy demand we’ve for our merchandise,” he mentioned.

For 2023, the firm expects to supply 52,000 whole models.

Photograph by way of Richard Truesdell on Wikimedia

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Learn Extra: Rivian To Discontinue Sure Customization Choices From Mid-September

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