Investors Revolt: Bitcoin Mining Executive Pay Sparks Shareholder Concerns
Are executives at Bitcoin mining companies earning too much? That’s the question many investors are asking, and new VanEck research suggests their concerns are valid. The report highlights significant issues around Bitcoin mining executive pay and its alignment with shareholder interests, prompting widespread shareholder concerns.
Why is Bitcoin Mining Executive Pay Under Scrutiny?
According to asset manager VanEck, executives in the Bitcoin mining sector are receiving compensation packages that far exceed those in comparable industries like IT and energy. This is largely driven by generous stock compensation. Despite these substantial packages, shareholders are pushing back, indicating a disconnect between executive rewards and company performance.
Shareholder Concerns Reach a Boiling Point
The data from VanEck research paints a clear picture: average shareholder approval for executive pay in the surveyed Bitcoin mining companies is only 64%. This is significantly lower than the roughly 90% approval seen in S&P 500 and Russell 3000 companies. Researchers Matthew Sigel and Nathan Frankovitz note that this skepticism is justified because executives continue to grant themselves large equity awards that dilute shareholder value without a clear link to long-term performance.
VanEck Research Unpacks the Data
VanEck reviewed executive compensation across eight US-listed Bitcoin miners: Bit Digital, Cipher Mining, CleanSpark, Core Scientific, Hut 8, MARA Holdings, Riot Platforms, and TeraWulf. The findings are striking:
- Average named executive officer (NEO) pay was $6.6 million in 2023.
- This average nearly doubled to $14.4 million in 2024.
- This pay level significantly surpasses compensation in comparable energy and tech sectors.
The Role of Equity Compensation
A major component of this compensation is equity compensation. In 2023, equity awards made up 79% of total pay, increasing to 89% in 2024. Riot Platforms CEO Fred Thiel received a particularly large equity award, totaling $79.3 million in 2024, which was significantly higher than peers.
VanEck’s report emphasizes, “Miner executive pay practices remain aggressive, equity-heavy, and often weakly aligned with shareholder outcomes.”
Examples: Stark Differences in Crypto Miner Compensation
The report highlighted disparities in how executive pay relates to market cap growth. While companies like TeraWulf and Core Scientific paid executives a small percentage (2%) of their market cap growth, Riot Platforms allocated a substantial 73% of its market cap increase ($230 million in 2024) to named executive officers. These disparities echo past controversies, such as Riot’s shareholders rejecting a pay proposal in 2022. In 2025, three of the eight miners faced notable pushback on their executive pay proposals.
Moving Forward: Recommendations for Executive Pay
Despite the challenges, there are positive developments. Six of the eight miners now use performance stock units (PSUs) with multi-year vesting tied to performance targets. Most also support annual say-on-pay votes, increasing accountability.
VanEck suggests miners improve executive compensation by:
- Tying bonuses to cost per coin mined.
- Incorporating capital efficiency metrics like return on invested capital.
- Strengthening performance requirements for equity awards with multi-year vesting.
As the Bitcoin mining industry matures, its executive compensation practices must also evolve to better serve shareholder interests.
In conclusion, the scrutiny on crypto miner compensation is intensifying. Investors, armed with data from reports like VanEck’s, are demanding better alignment between executive pay and company performance, particularly regarding substantial equity compensation packages. The path forward involves greater transparency and performance-based incentives that truly benefit shareholders.
