Shareholders trimmed assist for govt pay packages at main US Bitcoin (BTC) miners to a median of 64% on this yr’s proxy season, far under the over 90% approval norm throughout the S&P 500, according to a July 10 VanEck analysis be aware.
VanEck reviewed filings from eight listed miners and located common named-executive-officer (NEO) compensation climbed from $6.6 million in 2023 to $14.4 million in draft 2024 proxies.
Fairness and different long-term devices accounted for 79% of whole pay in 2023 and 89% in 2024, nicely above the Russell 3000’s 63% and the vitality sector’s 63% weighting.
Base salaries remained close to business norms at roughly $474,000, however fairness grants elevated considerably.
Riot Platforms’ CEO secured a $79.3 million 2024 inventory award, almost double Marathon’s $40.1 million grant and a number of occasions the peer averages. In the meantime, Core Scientific (CORZ), which was rising from chapter, issued its CEO $39.5 million in inventory as a part of remuneration.
Say-on-pay votes present mounting resistance
CORZ, Riot, and Marathon (MARA) failed their 2025 advisory votes on compensation, garnering approval charges of solely 38%, 32%, and 22%, respectively.
Business-wide, six in eight firms missed the 70% assist threshold that proxy adviser ISS flags as “low assist,” a failure fee of 75% versus about 4% for the Russell 3000.
Traders additionally scrutinised dilution. Fairness plan expansions equal to roughly 10% of the shares excellent had been authorized at Terawulf and CORZ, whereas smaller will increase had been authorized at Bit Digital, Hut 8, and MARA. Analysts warned that beneficiant share reserves amplify insider dilution when awards vest on brief timelines.
Gradual shift towards efficiency gating
Six of the eight miners now use efficiency inventory models (PSUs) that vest on multi-year share worth or whole shareholder return targets, up from two in 2022. Nonetheless, CleanSpark has but to undertake PSUs, and Bit Digital has authorization however no issuance.
VanEck famous that almost all plans nonetheless depend on two to three-year vesting horizons and “as-achieved” fairness, leaving alignment gaps with long-term worth creation.
Evaluating 2024 NEO pay with market cap positive aspects exhibits stark dispersion: Riot’s $230 million mixture NEO compensation equalled 73% of its market-cap enhance, whereas Marathon’s 18% ratio and Core Scientific’s 2% ratio mirrored higher alignment.
VanEck concluded that boards can mood push-back by tying bonuses to cost-per-coin-mined to implement working self-discipline, linking long-term fairness to return-on-capital metrics as an alternative of absolute share-price targets, and increasing vesting schedules and capping awards to curb dilution.
