Metaplanet CEO Admits Insufficient Disclosure of Compensation Plan, Denies Involvement in MMXX Trading Decisions
Metaplanet CEO Simon Gerovich responded to the controversy surrounding the company's executive compensation plan and its relationship with shareholder MMXX Ventures, admitting that he failed to adequately explain the 10th tranche of the new stock option reward plan and the organizational structure of MMXX. He stated that he is a significant but non-controlling shareholder of MMXX's parent company and did not participate in the company's trading decisions. The reward plan was established in December 2022, with 20% of Metaplanet's fully diluted equity set aside as a reward pool. The company plans to shift to a Bitcoin treasury strategy in April 2024, where each stock issuance to buy BTC will dilute existing shareholders while expanding the options available to Gerovich. Metaplanet fixed the reward pool at 319.464 million shares in August and set a five-year lock-up period, but did not restore the scale to the level it was at when implementing the Bitcoin strategy. On August 28, Gerovich exercised 92,000 options and received 64 million new shares, bringing his total holdings to 79.5875 million shares, approximately 6.2% of the company's total equity. Some shareholders are demanding the disclosure of MMXX's owners and the cancellation of the newly added 273 million shares in the reward pool. Metaplanet's stock price fell 7% on Monday, down 43% for the year, while the Nikkei 225 index rose 31% during the same period.
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