Bitcoin Mining Executives Face Backlash Over Skyrocketing Compensation Amid Shareholder Concerns

Bitcoin mining executives are raking in hefty compensation packages, far surpassing their counterparts in the IT and energy sectors. According to new research from asset manager VanEck, the stock-based pay structures for these executives have become a point of contention for shareholders, who are increasingly questioning the fairness and long-term value of such generous rewards.

Despite these “aggressive compensation packages,” the approval rate among shareholders for executive pay is alarmingly low. VanEck’s report reveals that only 64% of Bitcoin mining firm shareholders approve of executive compensation, a sharp contrast to the 90% approval rate seen in major indices like the S&P 500 and Russell 3000.

Skyrocketing Pay and Shareholder Skepticism
VanEck analysts Matthew Sigel and Nathan Frankovitz highlighted that Bitcoin mining firms continue to grant executives oversized equity awards. These equity-based rewards, the report argues, dilute shareholder value without a clear link to long-term performance or value creation.

The research, which reviewed compensation across eight US-listed Bitcoin miners—including Bit Digital, Cipher Mining, CleanSpark, and Riot Platforms—found that executive pay has been soaring. While the average executive salary for Bitcoin miners was $6.6 million in 2023, it nearly doubled to $14.4 million in 2024. These figures far exceed the pay packages of executives in the energy and tech sectors.

Equity awards made up the lion’s share of this compensation. In 2023, they accounted for 79% of total pay, and that figure grew to 89% in 2024. This aggressive compensation structure has triggered backlash from investors, who feel that executive pay is not sufficiently tied to the creation of long-term value.

Riot Platforms CEO Dominates With $79 Million Equity Award
Riot Platforms CEO Fred Thiel received the largest equity award among his peers, totaling $79.3 million in 2024. This amount was nearly double the equity compensation given to the CEOs of MARA Holdings and Core Scientific, and several times greater than that of other Bitcoin miner executives.

The report notes that this disparity in pay raises concerns about the alignment between executive compensation and the financial well-being of shareholders. Riot’s compensation package, in particular, sparked alarm due to the sheer percentage of market cap growth allocated to executive pay—73% of Riot’s market cap increase in 2024 was paid out to named executives, totaling a staggering $230 million.

These compensation practices have not gone unnoticed. In 2025, three out of the eight Bitcoin mining companies faced strong shareholder opposition to their executive pay proposals. The stark contrast between market cap growth and executive compensation has fueled frustration, particularly after Riot Platforms faced a shareholder revolt in 2022 when the company disclosed nearly $22 million in CEO compensation.

The researchers pointed out that while some companies like TeraWulf and Core Scientific paid executives only a small percentage of their market cap growth, the pay packages at Riot Platforms appear disproportionately large in comparison, raising red flags among investors.

Moving Toward Accountability: Performance Stock Units (PSUs)
Despite the growing concerns over excessive compensation, VanEck pointed out a positive development. Six of the eight companies studied have implemented Performance Stock Units (PSUs), a type of equity compensation designed to align pay with performance. Under this model, executives receive company stock only if certain performance targets—such as share price increases or total shareholder return—are met. Additionally, most companies have now adopted annual “say-on-pay” votes to increase accountability and give shareholders more influence over executive pay.

These efforts signal that Bitcoin miners are beginning to embrace more transparent and performance-based compensation structures as they mature into large-scale infrastructure operators.

VanEck’s research suggests that Bitcoin miners should refine their executive compensation programs by focusing on more relevant metrics like cost per coin mined and return on invested capital. The asset manager also recommends strengthening performance conditions for equity awards with multi-year vesting periods to ensure that executives are incentivized to create lasting value for shareholders.

“As Bitcoin miners mature into large-scale infrastructure operators, their executive compensation programs must evolve as well,” VanEck concluded.

As the Bitcoin mining sector continues to grow, so too does the scrutiny of how its executives are compensated. While generous pay packages and equity awards have become the norm, shareholders are starting to demand more accountability and better alignment between executive pay and long-term company performance. The shift towards performance-based compensation and the adoption of PSUs are positive steps, but the industry will need to evolve further to ensure that executives are truly incentivized to create value for all stakeholders—shareholders and the broader Bitcoin ecosystem alike.