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Rivian CFO Claire McDonough moves to GE Vernova
Change injects uncertainty as Rivian works to accelerate deliveries of its new line of vehicles
Rivian CFO Claire McDonough. (Sebastian Hidalgo/Bloomberg)
Key Takeaways:
- Rivian said CFO Claire McDonough will leave by Oct. 30 to join GE Vernova, sending the EV maker’s shares down 7% on Aug. 28.
- The departure adds uncertainty as Rivian ramps deliveries of its lower-cost R2 SUV, which is viewed as critical to long-term profitability.
- Rivian plans an executive search for a permanent CFO while Vice President of Finance Derek Mulvey is expected to serve as interim CFO.
Rivian Automotive Inc. fell after announcing that Chief Financial Officer Claire McDonough would step down from the electric vehicle manufacturer in the coming months to take the same role at turbine maker GE Vernova Inc.
The leadership change injects a measure of uncertainty at Rivian as the company works to accelerate deliveries of its new, lower-cost line of vehicles. The R2 midsize SUV that Rivian began delivering this year is seen as key to Rivian’s long-term profitability.
UBS analyst Joseph Spak said analysts at the bank sympathize with McDonough’s desire to take on a new role at a larger company and be closer to family on the East coast.
However, the optics of her leaving at a time when the company is “on the potential cusp of an inflection are not ideal,” Spak said in a note.
Rivian’s shares declined 7% at 12:40 p.m. in New York on Aug. 28, the most intraday since July 31. The stock had dropped about 15% this year through the Aug. 27 close, better than the 21% slide by EV market leader Tesla Inc. Both companies are contending with soft demand for EVs in the key US market.
Rivian on Aug. 27 said McDonough will remain in her current role until Oct. 30 “to ensure a seamless and thorough transition.” Derek Mulvey, Rivian’s vice president of finance, is expected to be appointed interim CFO when McDonough departs, the company said.
The automaker will consider internal and external candidates as part of a “comprehensive executive search process” to find a permanent replacement.
McDonough, 45, will join GE Vernova as a strategic adviser to CEO Scott Strazik in November and become CFO on Jan. 1, according to a regulatory filing Aug. 28. She will replace Kenneth Parks, who plans to move into an advisory role next year and retire on April 2, 2027.
