CleanSpark Executives Aim for $91M in Performance Awards

Bitcoin mining giant CleanSpark (NASDAQ: CLSK) has implemented a long-term incentive program (LTIP) designed to reward six senior executives with restricted stock units (RSUs) potentially worth a combined maximum value of $91 million.

The company disclosed the program in an SEC filing on Thursday, stating that its compensation committee approved the LTIP on Oct 1 following a review of compensation practices by “an independent third-party consultant.”

CleanSpark’s LTIP provides a glimpse into how mining companies are strategizing to incentivize and retain key personnel amidst heightened competition in the bitcoin mining sector. Earlier this year, CleanSpark’s rival Riot also revised its own LTIP to increase the maximum awards.

Eligible for the new LTIP are CleanSpark’s Executive Chairman, CEO, CFO, COO, CMO (Chief Mining Officer), and CAO (Chief Accounting Officer, who was promoted on Oct. 1 too).

The program’s payout structure is contingent on CleanSpark’s performance relative to its peer group. If the company achieves a percentile ranking of 45 to 54.9 based on predetermined metrics in fiscal year 2025, the team will receive 100% of the target RSUs, totaling $45.45 million. A ranking above 85.0 will unlock 200% of the target RSUs, reaching a maximum value of $90.9 million.

CleanSpark’s LTIP differs from Riot’s approach by taking into account a broader range of performance indicators, including stock price, market capitalization, enterprise value, revenue, hashrate growth, bitcoin production, uptime, and others, both in absolute terms and compared to peers.

However, CleanSpark has not disclosed the specific weighting mechanism of each metric in calculating the overall performance percentile.

In comparison, Riot uses a relatively straightforward method to determine the number of awards that can vest under its LTIP. This method involves comparing Riot’s stock performance against the Russell 3000 Index over a three-year period.

CleanSpark said its compensation committee will review the company’s performance in October 2025 to determine the maximum number of RSUs that can be vested under the LTIP. The company’s fiscal year begins in October.

40% of the earned awards will vest on October 31, 2025, with the remaining amount vesting equally over the following 12 calendar quarters, provided the executives remain employed by CleanSpark.

Additionally, CleanSpark noted that it increased the base salaries and bonus target percentage for the six executives for fiscal year 2025.