"Rivian has given its founder and CEO RJ Scaringe a new performance-based stock award that could ultimately be worth around $5 billion if all the underlying goals are met, according to a new filing. Scaringe's salary is also being doubled to $2 million per year, and he was given a 10% stake in Rivian's newest spinout Mind Robotics, the filing shows."
"The committee decided to cancel the 2021 performance award in part because of the "unlikeliness" that Scaringe could reach the goals required. The 2021 award consisted of 20,355,946 stock options that vested in part based on stock price increases. Six years past the grant date, if Rivian's share price passed $110, $150, $220, and $295, Scaringe would be able to purchase the stock options in corresponding tranches for just $21.72."
"Rivian's stock shot up to around $129 following its IPO in November 2021. But it fell to around $30 over the next six months, and has spent the last few years typically trading between $10 and $20. This has made it harder for Scaringe to access even part of the 2021 award, let alone the total value of around $6 billion, according to the company."
Rivian granted CEO RJ Scaringe a new performance-based stock award that could be worth about $5 billion if the specified goals are met. Scaringe's base salary was doubled to $2 million per year and he received a 10% stake in the spinout Mind Robotics. The compensation committee canceled a 2021 performance award partially because the required stock-price targets became unlikely to be achieved after significant share-price declines. The 2021 award included 20,355,946 options tied to price thresholds and additional time-vested options that remain, and the committee cited a resulting lack of incentive.
Read at TechCrunch
Unable to calculate read time
Collection
[
|
...
]