Does Rivian's CEO Pay Deal Rival Elon Musk’s Tesla Package?

Debates around Elon Musk's pay have been ever present since Tesla proposed a staggering US$1tn compensation package for the CEO in September.

After Norway's sovereign wealth fund voted against the proposed pay package and the Pope made his views clear, the ongoing will they-won't they has ended. 

During a Tesla shareholder meeting on 6 November, Musk's deal was approved, securing 75% of votes.

In celebration, he told attendees: “Other shareholder meetings are snoozefests but our are bangers. Look at this. This is sick.”

Following the announcement, fellow EV maker Rivian made one of its own, declaring on 7 November that it will be giving its CEO, RJ Scaringe, a revised pay package worth as much as US$4.6bn over the next decade.

Shared in an SEC filing on the day, the Board decided to cancel RJ’s previous 2021 compensation package to “retain and incentivise” the CEO as he navigates the EV company through its “critical next phase”.

In total, the package will be worth the US$4.6bn if the firm’s stocks reach US$140 per share.

Rivian's pay package deal by 2035

For RJ to get the package, Rivian needs a stock boost of 800%, taking the current value from US$15, while also achieving undisclosed operating income and cash flow targets, according to a report from TechCrunch.

After it hits US$40 a share, he will receive two million shares for every US$10 a share he adds to the stock price. According to TechCrunch, the stocks would need to retain their price level at US$140 for 120 consecutive days to receive the full package.

RJ could earn another 14.5 million shares if he achieves annual targets for adjusted operating income and cash flow operations by 31 December 2032.

Marina Hoffman, a Rivian spokesperson, said in a statement to Business Insider: “Rivian shareholders will see an approximate US$32bn of return before RJ sees US$1 from this award.

“If the entire award is earned by RJ, Rivian shareholders will see around US$153bn of value creation.”

Rivian is entering a pivotal moment as it prepares to launch the R2, a US$45,000 electric SUV designed to make the company's premium line up more accessible to a broader range of buyers.

RJ previously told Business Insider: “For us to become a company of the scale we aspire to be, which is producing many millions of cars a year, we’re not going to get there with a US$90,000 single flagship product.”

Inside Musk’s pay package 

For Musk to receive the US$1tn pay package at the end of the 10-year timescale, he must deliver on key targets and strategic ambitions bundled under the company’s long-term vision for creating a ‘Sustainable Abundance’ for all.

Tesla’s targets he must reach include the following:

• Delivering 20 million Tesla vehicles and one million robots
• Getting 10 million subscriptions to Tesla’s Full Self Driving feature
• Bringing one million self-driving Robotaxi vehicles into commercial operation 
• Earning up to US$400bn in core profit 
• Lifting Tesla’s overall market value to US$8.5tn, which is currently US$1.4bn

Challenges facing the CEOs

Tesla’s third quarter of 2025 reported revenue of US$28.1bn, according to Reuters, exceeding the London Stock Exchange Group estimate by US$1.7bn. However, the company's Q3 financial report, released in October 2025, showed a 4% fall in share value.

In Rivian’s third quarter, revenue increased 78% to US$1.56bn. The company maintained its previously lowered 2025 guidance, expecting to lose an adjusted US$2.2bn for the year in order to make 42,500 vehicles, according to CNBC.

Both companies’ financial results are facing strong EV industry headwinds, including the loss of a tax credit supporting EV sales, increased EV and hybrid competition and tariffs on imported auto parts.

In a letter to shareholders on 4 November, RJ said that despite economic and policy-based uncertainties, “we remain focused on long-term growth and value creation”.