The Argo Blockchain PLC (LON: ARB) share price dropped 8.63% after announcing the grant of Performance Share Units (PSUs), Restricted Share Units (RSUs), and share options (Share Options) to its interim CEO in line with the 2022 Equity Incentive Plan approved by shareholders at the firm’s 2022 Annual General Meeting.
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Investors’ adverse reaction to the announcement was expected given the challenges faced by the company since last year, driven by the crash in Bitcoin and crypto prices. The Company’s interim CEO, Seif El-Bakly, took over on 9 February 2023 after the former CEO and founder Peter Wall stepped down.
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Before becoming interim CEO, Seif El-Bakly was Argo’s Chief Operating Officer (COO). At the time, Argo Blockchain said it would hire an executive search firm to recruit its next CEO. Could today’s share awards indicate that the Bitcoin mining company is about to name Seif El-Bakly as its new substantive CEO? Only time will tell.
The interim CEO was awarded 1,973,892 PSUs and 658,623 Share Options following Argo Blockchain’s remuneration policy as it applies to the CEO. The share options granted and the PSUs contain performance conditions that Mr El-Bakly must meet in his role as CEO.
The share options and PSUs vest over three years, with the first vesting occurring twelve months from when they were granted (12/36ths of the PSUs and share options will vest at this point).
Afterwards, the PSUs and share options will vest at 3/36th per quarter for the remaining period so long as Argo Blockchain employs El-Bakly. Seif El-Bakly must continue to meet the performance targets linked to the equity awards for the share options and PSUs to continue vesting.
Furthermore, Argo Blockchain reminded investors that it had awarded 6,839,980 RSUs in the aggregate to its 38 employees on 9 March 2023 to align incentives across the entire team.
The RSUs will vest over three years, with the first vesting occurring six months from the grant date. 6/36ths of the PSUs vest at this point, with the remaining PSUs vesting at 3/36th per quarter for the rest of the vesting period so long as the employees remain with the company.
*This is not investment advice.
Argo Blockchain (ARB) share price.
The Argo Blockchain (ARB) share price dropped 8.63% to trade at 13.249p, from Thursday’s closing price of 14.500p.
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