Rivian loses its shine as investors worry about production delays
The company also did not inform investors that its chief operating officer, Rod Copes, a Harley-Davidson veteran, left the company last year. Public companies and those in the process of listing their shares generally disclose the departures of their leaders. The news was first reported by The Wall Street Journal.
Understanding the supply chain crisis
Ms Mast said Mr Copes had a “gradual transition from Rivian in the fall of 2021, prior to the IPO”, and retired in December, following the offer.
Mr. Copes, 55, said in an interview that he did not leave Rivian due to performance concerns or because there were production issues. He said he had achieved key objectives and the structures were in place for the ramp-up of Rivian’s production. “It was a smooth and seamless transition,” Mr. Copes said.
But corporate governance experts believe Rivian should have disclosed his impending departure to investors during the IPO, given his prominent role. “If they knew he was leaving, the optimal disclosure would have been to identify their COO but indicate that he was leaving,” John C. Coffee Jr., a professor at Columbia Law School, said in an e-mail. mail.
According to a former executive, Rivian has a poor management culture.
Manager Laura Schwab said she was fired last year from a top sales and marketing job after raising concerns about what she called the ‘boys club culture’ and “gender discrimination” within the company. She filed a lawsuit in California state court accusing Rivian of violating the state law prohibiting discrimination and retaliation in employment.
Ms Schwab said she had been involved in 30 vehicle introductions in previous jobs in the automotive industry, including at Aston Martin and Jaguar Land Rover. Shortly after joining Rivian, she said, she felt compelled to voice her concerns that the company might miss its delivery targets.
“The production line doesn’t go from zero to thousands of cars overnight; it just doesn’t work that way,” she said.