Tesla rival Rivian gives CEO RJ Scaringe a Musk-like pay package worth up to $4.6B

EV maker Rivian on Friday said it was giving its CEO a pay plan worth as much as $4.6 billion over the next decade, a deal similar to Tesla’s record package for CEO Elon Musk, and linked to new profit targets and reduced share price milestones.The move by the Rivian board shows that the Tesla plan for Musk could become a model for companies aiming to grow fast. Rivian’s pay package for its CEO RJ Scaringe could be one of the richest in history, depending on what performance goals are met.The new compensation package also highlights Rivian’s push to retain its founder and keep him focused on growth and profitability as the automaker, known for its R1S SUVs and R1T pickups, gears up to launch next year its smaller, more affordable R2 SUV that will compete with Tesla’s best-selling Model Y crossover.Tesla shareholders on Thursday approved a record $1 trillion pay package for  Musk based on a combination of operational and valuation milestones over 10 years.“While Rivian may not be a direct copycat, there are definitely Elon Musk characteristics that are similar,” said Yonat Assayag, a partner at compensation consulting firm ClearBridge Compensation Group.The offer shows how other companies are following the Tesla model for tying outsize CEO rewards to big potential market gains, she said, adding that some have reached out to her own firm looking for similar executive-pay designs.“It’s not to keep up with Musk, but inspired by Musk’s award.”Under the new plan, Scaringe is receiving options to purchase up to 36.5 million shares of Rivian’s Class A stock, about 16 million more than his previous grant, at an exercise price of $15.22 apiece, the company said in a filing with the Securities and Exchange Commission.The award will vest only if Rivian achieves reduced stock-price milestones ranging from $40 to $140 a share over 10 years, as well as new operating income and cash flow targets over the next seven years.The previous pay...