Form 4: Rivian CEO Robert Scaringe Executes Stock Option and Sells Shares Under 10b5-1 Plan
SEC Form 4 Filing
Rivian CEO Robert Scaringe exercised stock options and sold shares of Class A Common Stock under a pre-arranged 10b5-1 trading plan.
Summary
- Rivian CEO Robert Scaringe exercised stock options to acquire 83,334 shares of Class A Common Stock at a price of $2.6282 per share on November 25, 2024.
- On the same day, Scaringe sold 83,334 shares of Class A Common Stock at a price of $11.25 per share.
- These transactions were executed under a pre-arranged Rule 10b5-1 trading plan adopted on March 8, 2024.
- Following these transactions, Scaringe directly owns 863,361 shares of Class A Common Stock and indirectly owns 4,595 shares through an LLC and 2,632,766 shares through a trust.
- Scaringe also holds 7,963,834 stock options.
Sentiment
Score: 5
Explanation: The document is a routine SEC filing detailing insider transactions, which is neither positive nor negative in itself. The transactions are part of a pre-arranged plan, so there is no indication of any change in sentiment.
Industry Context
This filing is a routine disclosure of insider transactions and is common for executives of publicly traded companies. The use of a 10b5-1 trading plan is a standard practice to avoid accusations of insider trading.
Comparison to Industry Standards
- The use of 10b5-1 trading plans is a common practice among executives at publicly traded companies, including those in the automotive and technology sectors, such as Tesla and Lucid.
- These plans allow executives to sell shares at predetermined times and prices, mitigating the risk of insider trading allegations.
- The reported transactions are consistent with standard executive compensation practices, where stock options are granted and subsequently exercised and sold.
Stakeholder Impact
- The transactions have a minimal impact on shareholders as they are part of a pre-arranged trading plan and do not indicate a change in the company's fundamentals.
Key Dates
| Date | Description |
|---|---|
| 02/14/2023 | The stock option was fully vested. |
| 03/08/2024 | Date the 10b5-1 trading plan was adopted. |
| 05/07/2024 | Date of the Issuer's Quarterly Report on Form 10-Q filing. |
| 11/25/2024 | Date of the stock option exercise and share sale. |
| 11/27/2024 | Date of the SEC Form 4 filing. |
Keywords
Rivian, Robert Scaringe, stock options, 10b5-1 trading plan, insider trading, Class A Common Stock, SEC Form 4
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