Metaplanet CEO Gerovich Responds to Shareholder Criticism Over Stock Incentive Plan

Metaplanet CEO Simon Gerovich responded to shareholder concerns over his company's stock incentive plan, which has been criticized for favoring his own interests. The controversy centers around a plan called 'Series 10 Stock Purchase Rights,' which was introduced in December 2022 and rewards 20% of Metaplanet's fully diluted capital with an award pool.

Gerovich acknowledged that the company did not adequately explain the incentive arrangement, but maintained that he is an important but non-controlling shareholder of MMXX Ventures, the parent company of MMXX. He claimed to have no involvement in its trading decisions.

The issue lies in Metaplanet's shift towards a Bitcoin reserves strategy in April 2024, which has diluted existing shareholders with each new share issuance. As a result, Gerovich's option equity increased in value.