Metaplanet cuts executive reward pool by 41% after shareholder backlash
Metaplanet slashes executive reward pool
Tokyo‑based bitcoin treasury firm Metaplanet announced a 41 % reduction in its management equity reward pool after shareholders protested the plan. The company cut the potential share pool in its Series 10 Stock Acquisition Rights plan to 188.2 million shares.
Key numbers
- Reward pool reduced by 41 % to 188.2 million shares.
- More than $220 million of warrant value eliminated.
- CEO Simon Gerovich keeps 64 million shares already exercised and the right to acquire an additional 49.128 million shares.
Company statement
CEO Simon Gerovich said the structure was never meant to reward “non‑accretive or modestly accretive dilution.” He posted on X that the change “extinguishes over $220 million of warrant value.”
What is confirmed
- The reduction was filed on Friday and is reflected in the company’s disclosures.
- The previous pool of about 320 million shares was cut to 188.2 million shares.
- Gerovich’s 64 million shares from the Aug 28 exercise are retained, and he can still acquire 49.128 million shares under the new plan.
- The company withdrew a prior plan to move warrants into an employee incentive vehicle and will design a new compensation plan with external advisers.
Remaining questions
- Gerovich did not address his relationship with MMXX Ventures, a shareholder that sold shares, or any personal economic interest in the company.
Why it matters
The reward pool was originally set at 20 % of Metaplanet’s fully diluted share capital, which could dilute existing shareholders while increasing management ownership. Reducing the pool lowers the potential dilution and removes a large amount of warrant value that had been a point of contention for investors who bought after the company began selling shares to buy bitcoin.
Next steps
Metaplanet plans to develop a new executive compensation framework with the help of external advisers, though no timeline was given.
