Key Takeaways
- US-listed bitcoin miner govt pay doubled to $14.4M in 2024, principally as a result of stock-based compensation.
- Shareholder assist for govt pay proposals within the mining sector fell to 64%, signaling rising resistance and concern over dilution.
- Some miners are shifting to performance-linked inventory awards, however disparities in pay-for-performance alignment persist throughout corporations.
Govt compensation at US-listed bitcoin mining corporations has seen a dramatic rise, with common pay packages reaching $14.4 million in 2024—a 118% enhance over final yr’s $6.6 million, based on VanEck.
This far exceeds common govt pay within the power and know-how sectors, regardless of base salaries remaining related at $474,000 in 2023.
Inventory compensation
The first driver behind this surge is an industry-wide reliance on stock-based compensation, which accounted for 89% of miner govt pay in 2024.
Such equity-heavy constructions are drawing growing scrutiny from shareholders, who fear about dilution and weak alignment with long-term efficiency.
VanEck’s evaluation discovered that whereas 99% of govt pay proposals handed in company America through the 2024 proxy season, bitcoin miners obtained simply 64% common assist, indicating important shareholder resistance.
6 of 8 miners
Six of the eight reviewed miners, together with Riot Platforms, Core Scientific, Hut 8, Cipher Mining, TeraWulf, and Marathon Digital, have expanded using efficiency inventory items (PSUs) that vest over a number of years and are tied to share worth or whole shareholder return.
Marathon has transitioned totally to PSUs in 2025, whereas Core Scientific reinstated its long-term incentive plan after reorganization.
Nevertheless, CleanSpark and Bit Digital haven’t but carried out PSUs, regardless of authorizing them.
VanEck’s analysis
VanEck’s analysis highlights stark disparities in pay-for-performance alignment.
At TeraWulf and Core Scientific, govt pay equaled about 2% of 2024 market-cap development, whereas at Riot, govt compensation reached 73% of market-cap good points, and at Marathon, 18%.
Shareholder frustration facilities on dilution dangers and perceived inequities in revenue distribution as mining profitability rises.
Traders are demanding higher transparency, clearer revenue allocation, and extra sustainable enterprise practices because the {industry} matures.