Metaplanet CEO addresses shareholder concerns over stock dilution

Metaplanet CEO Simon Gerovich has addressed shareholder criticism regarding stock dilution and corporate governance. In a lengthy written statement, Gerovich acknowledged that previous explanations regarding management compensation and the impact of the 10th series of stock acquisition rights may not have been sufficient.

To address concerns, the company is revising its incentive structures, which includes a plan to cancel 41% of the target shares for the 10th series of stock acquisition rights. The company has moved to fix the number of potential shares at 319,464,000, which represents approximately 25% of the total issued shares, replacing a previous mechanism that allowed the number of shares to increase in response to capital increases.

Gerovich noted that the company has evolved significantly since the original incentive structures were designed, growing faster than anticipated and developing a global shareholder base. He stated that as the company matures, its governance, compensation, and communication methods must also mature. Moving forward, the company intends to design new systems with external compensation consultants and will strive for consistent information disclosure in both English and Japanese.