Rivian's board has introduced a new, potentially historic, compensation package for its CEO, RJ Scaringe, valued at up to $4.6 billion if all conditions are met over the next decade. The board moved to replace Scaringe's previous pay plan, which it believed was unlikely to be achieved, with a revamped structure featuring more realistic milestones to incentivize his continued leadership and the company's growth.

The new plan ties Scaringe's earnings to lower, more manageable stock-price milestones, ranging from $40 to $140 per share over the next ten years, replacing the prior targets of $110 to $295 per share. The award is contingent on hitting specific operating income and cash flow targets over the next seven years. The new package also doubles Scaringe's base salary to $2 million and grants him options to purchase up to 36.5 million shares of Rivian's Class A stock.

If Rivian meets all the goals in this revised package, the CEO will realize the full value, while shareholders are projected to gain $153 billion in value. The news emphasizes a renewed focus on growth and profitability for the company, which recently announced layoffs ahead of the launch of its more affordable R2 electric vehicle.