GE Vernova lands Rivian’s CFO, leaving EV maker to find successor

GE Vernova is set to hire Claire McDonough, the former CFO of Rivian, who played a critical role in the electric vehicle maker's initial public offering (IPO) in 2021. McDonough, who will join GE Vernova in November and take on the CFO role on January 1, 2022, will succeed Kenneth Parks, who is retiring. Her expertise in finance will be valuable to GE Vernova, as it enters the energy tech sector.

Rivian, however, will need to find a new CFO to fill the gap left by McDonough's departure. Derek Mulvey, the current VP of finance at Rivian, is expected to serve as an interim CFO after her departure. The announcement of McDonough's new role has caused Rivian's shares to drop more than 6% intraday, while GE Vernova shares declined about 3%.

Investors and analysts have attributed the decline in Rivian's stock to the lack of a clear long-term succession plan for the CFO role. Morningstar's Seth Goldstein expects Rivian to continue on its current financial path, focusing on profitability and positive free cash flow as it increases production of its affordable electric SUV.

Goldstein believes that Rivian's finance team will be capable of managing the company's cash and raising additional capital if required, and the company is expected to maintain its capital allocation strategy unchanged.

McDonough's departure will put pressure on Rivian to demonstrate that its finance team is capable of handling the company's financial responsibilities without her. However, McDonough's track record of cost discipline and her role in negotiating Rivian's technology joint venture with Volkswagen should prove beneficial to GE Vernova. Parks will continue to serve as an advisor to McDonough at GE Vernova after her arrival.