So many people are misinterpreting this $DGXX proxy.
First - this is a preliminary proxy. The final will be done next week - and I'm sure those percentages will likely be lower, since they are set at the max right now.
Second - the additional shares are not for Michel or his son. They are a necessity to hire and retain talent. Hyperscalers are paying $3M+ for top engineers and AI specialists. No small company can compete - unless they provide incentives through share packages.
So if $DGXX does well - these new hires (who are getting paid 75% less in salary) will make a killing on the stock.
There are lots of reasons to hate the way the stock is trading. The entire industry is getting crushed.
But Michel being greedy/not giving a shit about his shareholders is not one of them.
The overall premise I agree with. Here’s my problem.
1. Michel and Alec already make a ton of money compared to the size of the company.
2. The buildout was on the back of shareholders. Bringing in Hans was on the back of shareholders (USDC ownership dropping to below 50%).
If they want to attract talent, it should come out of their already existing 20% cap. Shareholders have paid for enough of this proof of concept.
The biggest problem with $DGXX has always been the same:
STOCK-BASED COMPENSATION (SBC).
It's exactly what keeps investors like @itsalasdairmann from @edelbridgealpha on the sidelines.
It's also why I was comfortable with $IREN's 1% annual SBC to founders.
Here's the HUGE difference:
With IREN, we already know the SBC structure for the next five years.
We can model it.
Quantify it.
Price it in.
With other companies like $SLNH, $WULF, etc etc?
It's a lottery.
And $DGXX just drew another ticket.
The latest proxy includes proposals 5 and 6, which could:
🔴 Remove the existing 20% combined equity compensation cap, potentially allowing up to 40%.
🔴 Introduce automatic annual increases to equity compensation limits.
🔴 Eliminate restrictions on grants to insiders and individual recipients.
And here's the CRAZY part.
In 2025, the CEO and his son received $19.5 MILLION in equity awards.
The company's revenue?
Just $34.2 MILLION.
Let that sink in.
I'm not against rewarding management.
I'm against shareholders constantly paying the price through dilution.
This is exactly why I've been raising this issue for months.
Predictable SBC can be priced in.
Unpredictable SBC is a gamble with shareholders' money.
Growth means nothing if shareholders don't get to keep their share of it.
$DGXX needs to understand that.
$DGXX New proxy just dropped and I do not like it.
Proposals 5 and 6 replace the fixed 6.2M RSU cap and the 10% option limit with ~10% each, plus an automatic top-up every January, up to 20% each.
The old 20% cap on all equity comp combined gets deleted, so it's up to 40% on paper. Limits on grants to insiders and to any single person are gone too.
This after the CEO and his son were awarded $19.5M in 2025 on $34.2M of revenue.
I'm not against paying people, but this is a $34M revenue company already paying two people like a large cap and now you want more?
I'm voting against proposal 5 and 6.