In 2025, shareholders of Bitcoin mining firms significantly reduced support for executive pay packages, driven by rising equity-based compensation and dilution concerns.
Shareholder Pushback on Executive Compensation
According to VanEck's research, average support for executive pay among Bitcoin mining firms dropped to 64%, well below the 90% norm seen in S&P 500 companies. This came in the wake of executive compensation nearly doubling from 2023 to 2024, rising from $6.6 million to $14.4 million. Notably, 89% of 2024 pay packages were comprised of equity compensation, fueling investor concerns.
Dilution Concerns Pressure Miner Boards
Shareholders voiced worries regarding equity plan extensions that several companies initiated. For instance, Terawulf and Core Scientific expanded their equity reserves by about 10% of outstanding shares. Analysts cautioned that large equity pools could lead to significant dilution, resulting in pushback from shareholders.
Weak Ties Between Pay and Market Gains Raise Concerns
VanEck's analysis highlighted a disconnect between executive pay and market capitalization increases. Riot's $230 million executive pay constituted 73% of its market cap growth, marking the worst ratio among peers. In contrast, firms like Marathon and Core Scientific showed better alignment. Most firms failed to fully link executive pay to long-term operational efficiency and investor returns.
In 2025, major Bitcoin miner shareholders significantly lowered their support for executive compensation packages, a result of rising stock awards and dilution concerns. The failures seen in advisory votes highlight the need for stricter compensation frameworks and better alignment with operational performance.
