Bitcoin Miner Executives Face Backlash Over Soaring Pay Packages

US Bitcoin mining executives are drawing criticism from shareholders as their pay packages soar far beyond peers in the energy and tech sectors, according to a new report by asset manager VanEck. Despite receiving “aggressive compensation packages,” shareholder approval for executive pay among Bitcoin mining firms is notably low, with investors pushing back against what they see as oversized stock awards that dilute their holdings. VanEck’s head of digital assets research, Matthew Sigel, and investment analyst Nathan Frankovitz reported on Thursday that average shareholder approval for executive pay at Bitcoin mining firms stands at just 64%, significantly lower than the 90% approval seen across S&P 500 and Russell 3000 companies. The researchers noted, “Mining executives continue to grant themselves oversized equity awards that dilute shareholders without reliably linking pay to long-term value creation.” Equity Awards Drive Compensation Surge The report examined executive compensation across eight US-listed Bitcoin miners: Bit Digital, Cipher Mining, CleanSpark, Core Scientific, Hut 8, MARA Holdings, Riot Platforms, and TeraWulf. It found that while mining executives earned an average of $6.6 million in 2023, this figure has nearly doubled to $14.4 million in 2024. This surge outpaces comparable sectors, with equity awards forming 79% of total pay in 2023 and rising to 89% in 2024. Riot Platforms CEO Fred Thiel received the highest equity award among his peers, totaling $79.3 million in 2024, nearly double the awards granted by MARA Holdings and Core Scientific and significantly higher than other miner CEO grants. “Miner executive pay practices remain aggressive, equity-heavy, and often weakly aligned with shareholder outcomes,” the VanEck report concluded. Concerns Over Pay-Performance Alignment The report also highlighted stark disparities in how these pay packages align with company performance. TeraWulf and Core Scientific paid executives amounts equivalent to just 2% of their market cap growth, while Riot Platforms paid a striking 73% of its market cap increase to named executive officers, totaling $230 million in 2024 alone. These concerns echo issues raised in 2022 when Riot Platforms’ shareholders rejected its executive pay proposal after disclosing nearly $22 million in CEO compensation. In 2025, three of the eight Bitcoin miners faced “striking rebukes” from shareholders over executive pay proposals, indicating continued dissatisfaction among investors. The findings highlight the growing tension between Bitcoin miners and their shareholders as the industry navigates market volatility while executives secure hefty compensation packages, raising questions about long-term value creation for investors. The post Bitcoin Miner Executives Face Backlash Over Soaring Pay Packages appeared first on TheCoinrise.com .

Source: The Coin Rise