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TLDR:
- Shareholder support for Bitcoin miner exec pay fell to 64%, far below traditional market norms.
- Miner CEOs earned up to $79M in equity, raising concerns over Bitcoin-linked windfalls.
- Riot paid execs $230M, 73% of its 2024 market cap growth, triggering investor alarm.
- Six major miners have begun using performance-based stock to ease investor pressure.
Bitcoin mining companies face shareholder resistance over executive compensation packages that nearly doubled in 2024. A new VanEck report reveals growing investor frustration with pay practices that appear disconnected from performance in the crypto sector.
The 2025 proxy season has exposed deep tensions between Bitcoin miners and their shareholders. Executive compensation at major mining firms averaged $14.4 million in 2024, up from $6.6 million the previous year.
Meanwhile, shareholder support for these pay packages dropped to just 64 percent, well below the 90 percent approval rates seen across traditional markets.
Three prominent miners faced outright rejection of their compensation proposals. Core Scientific shareholders delivered the harshest verdict, with only 38 percent supporting executive pay plans. Riot Platforms and Marathon Digital followed closely behind, receiving approval from just 32 percent and 22 percent of investors respectively.
The rebellion marks a striking departure from corporate norms, where executive pay proposals typically sail through with overwhelming support.
Bitcoin Executives Outpace Tech Sector Pay
Bitcoin mining executives now earn significantly more than their counterparts in comparable industries. The VanEck analysis examined eight major US-listed miners and found their compensation packages dwarf those in energy and technology sectors.
Base salaries remained relatively modest at $474,000 on average, roughly matching industry standards. However, equity awards drove total compensation far beyond peer levels. These stock-based payments comprised 89 percent of miner executive packages in 2024, compared to much lower percentages in traditional sectors.
The heavy reliance on equity compensation created massive pay packages when Bitcoin and mining stocks surged. Riot Platforms CEO received the largest equity award at $79.3 million, nearly double Marathon Digital’s $40.1 million grant to its chief executive.
Cash bonuses also exceeded industry norms, with mining executives collecting $836,000 on average in 2023, more than double the amounts paid in IT and energy companies.
Performance Alignment Concerns Drive Shareholder Revolt
The compensation surge has raised serious questions about pay-for-performance alignment in the crypto mining sector. VanEck’s analysis revealed stark disparities between executive pay and shareholder value creation across different companies.
TeraWulf and Core Scientific executives received compensation equal to just 2 percent of their companies’ market capitalization growth in 2024. In sharp contrast, Riot Platforms paid its executives $230 million, equivalent to 73 percent of the company’s market cap increase for the year.
Marathon Digital’s executive compensation represented 18 percent of its market cap growth, highlighting the wide variation in pay practices across the sector.
These disparities have fueled investor concerns about whether massive equity awards truly incentivize value creation or simply reward executives for Bitcoin price appreciation.
The pushback extends beyond individual companies to broader governance issues. Shareholders increasingly question whether mining executives deserve outsized compensation in an industry where success often depends more on Bitcoin market movements than operational excellence.
Bitcoin Miners Begin Adopting Performance-Based Reforms
Some Bitcoin mining companies have started implementing governance reforms in response to shareholder pressure. Six of the eight miners analyzed now use performance stock units that vest based on share price targets or relative returns rather than simple time-based schedules.
Marathon Digital transitioned entirely to performance-based equity in 2025, while Cipher Mining introduced a balanced approach combining traditional restricted stock with performance units. Core Scientific rebuilt its incentive program around cumulative stock performance following its bankruptcy reorganization.
These structural changes represent meaningful progress toward better alignment, though implementation varies widely across companies. Most leading miners now incorporate multi-year vesting periods and defined performance thresholds into their equity plans.
However, gaps remain in governance practices. CleanSpark has not adopted performance stock units, while Bit Digital has authorized them but shows no evidence of actual issuance. Both companies emphasize performance principles but lack the milestone-based criteria that investors increasingly view as essential.
The sector’s evolution toward more rigorous pay practices reflects mounting shareholder scrutiny and proxy advisor pressure. Companies receiving less than 70 percent support on compensation votes face expectations to respond with concrete reforms in subsequent proxy statements.
English (US) ·