GE Vernova hires Rivian CFO Claire McDonough as next CFO

Good morning.

GE Vernova is hiring a CFO who helped take Rivian public in the largest U.S. IPO of 2021, placing Claire McDonough at the center of the EV maker's transition from a closely held startup to a company accountable to public-market investors. Her move brings that experience to the energy technology company and draws new attention to the finance team she leaves behind at Rivian.

Transition Details

McDonough will join GE Vernova in November and become CFO on January 1, succeeding Kenneth Parks, who is retiring. Derek Mulvey, Rivian's VP of finance, is expected to serve as interim CFO after McDonough departs.

Market Reaction

Rivian shares fell more than 6% intraday Friday following the announcement, while GE Vernova shares declined about 3%. Investors and analysts pointed to Rivian's lack of a clear long-term successor as one factor weighing on its stock.

Cullen Rogers, portfolio manager of the Wedbush ReturnOnLeadership U.S. Large-Cap ETF, told me Rivian's leadership pipeline helps explain the sharper reaction.

"Markets don't just react to who's leaving; they react to how visible the succession plan is," Rogers said.

GE Vernova's announcement offers a clearer handoff, with Parks staying on as an advisor after McDonough arrives. Rivian has yet to name a permanent successor.

McDonough's Track Record

McDonough joined Rivian as CFO in January 2021, months before its $13.7 billion IPO that November. She also helped negotiate Rivian's technology joint venture with Volkswagen, which agreed to invest up to $5.8 billion.

Rogers said that experience should translate to GE Vernova.

"That's a transferable skill set, not a personal one," he said.

Impact on Rivian

At Rivian, McDonough's departure will test whether the EV maker has built a finance team that can carry on without her.

"The next two quarters are the real test that will tell whether strong leadership was distributed across the team or concentrated in one office," Rogers said.

Morningstar senior equity analyst Seth Goldstein expects Rivian to stay on its current financial course. The company is working toward profitability and positive free cash flow as it ramps up production of its lower-priced electric SUV, he said. Its finance team will also manage Rivian's cash and may raise more capital if needed. Morningstar has raised its fair value estimate for Rivian to $22 a share from $20.

Goldstein expects Rivian's capital allocation strategy to remain unchanged and points to its profitability guidance and timeline for reaching positive operating cash flow as key measures.

McDonough also leaves Rivian with a record of cost discipline.

"During her time at Rivian, McDonough proved to be a finance leader with a focus on cost discipline," Goldstein said. "I view this as an asset at any company."

— Sheryl Estrada Sheryl.Estrada@fortune.com

Leaderboard: Fortune 500 Power Moves

Jessica Fischer, CFO of Charter Communications (No. 85) since 2021, will step down from her role, effective October 15, to relocate for another professional opportunity. Fischer first joined the company in 2017 as deputy treasurer. Kevin Howard, currently EVP and chief accounting officer and controller, was appointed interim CFO. The company will begin a search for a permanent CFO.

The weekly Fortune 500 Power Moves column tracks Fortune 500 company C-suite shifts—see the most recent edition.

More Notable Moves

• Julia Brau Donnelly, CFO of Pinterest, Inc. since 2023, is stepping down, effective October 30, to pursue another opportunity, according to an SEC filing. The company has begun an external search process to identify Donnelly's successor. Vikram Naidu was appointed principal financial officer on an interim basis. Naidu has served as VP of finance and business operations at Pinterest since March 2024.

• Michael Grasher was appointed CFO of Teladoc Health, Inc. (NYSE: TDOC), a virtual health care company, effective immediately. Grasher has more than three decades of experience across the insurance and financial services sectors, including more than 12 years in CFO roles. He most recently served as CFO of IFG Companies. Before that, Grasher served as CFO and EVP of Fortegra, and as CFO and EVP of Amerisafe.

Big Deal: Salary Increase Trends

Marsh's latest Mercer QuickPulse survey of 1,001 U.S. organizations found employers plan average 2027 merit increases of 3.2% and total salary increases of 3.5%, roughly matching 2024–2026 levels and marking a fourth straight year of moderate raises.

• High tech (3.8%) and banking (3.7%) lead industry budgets.
• Consumer goods and retail lag near 3%.
• Most employers (87%) were still finalizing budgets as of July, with 57% expecting economic uncertainty to shape decisions.
• Promotions are projected to dip to 8.4% of the workforce, while 64% plan off-cycle pay adjustments.
• AI adoption in compensation planning is widespread but shallow, with just 1% at an advanced stage.

Going Deeper

"Apple's John Ternus era: Can a low-key engineer win the AI race?" is a Fortune feature.