Executive compensation for Bitcoin miners has become a focal point for investors as rising stock-based payouts spark concerns about long-term value and fairness.
Rising Compensation and Its Reasons
Named Executive Officer (NEO) compensation in the Bitcoin mining sector increased from $6.6 million in 2023 to $14.4 million in 2024. Companies like Riot Platforms lead with stock grants worth $79.3 million, followed by Marathon Digital and Core Scientific with $40.1 million and $39.5 million respectively. This is occurring amid record Bitcoin prices, highlighting growing shareholder dissatisfaction regarding excessive equity grants.
Shareholder Rejection of High Salaries
During the 2025 proxy season, most of the largest Bitcoin mining companies failed to achieve more than 40% approval for their executive compensation plans. Riot Platforms, Marathon, and Core Scientific garnered only 32%, 22%, and 38% support from shareholders, indicating rising investor discontent exacerbated by substantial equity offerings.
Impact of Compensation on Long-term Strategy
Some analysts emphasize that unfettered equity issuance during periods of high Bitcoin prices poses a long-term risk to shareholder value. While some companies begin to link pay to performance aims, concerns over misalignment between remuneration and actual achievements grow.
With predictions suggesting Bitcoin could reach $200,000 by 2026, investor focus is shifting to whether mining firms can deliver sustainable growth and enhance corporate governance.
