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Falling stock prices force down cannabis industry CEO pay in 2022

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Total compensation for CEOs of cannabis multistate operators fell in 2022 versus 2021, as tumbling marijuana stock prices last year drove down the equity-based pay component top executives received.

By contrast, salaries for chief executives at the largest MSOs were consistent from 2022 to 2021, according to the companies’ filings with federal regulators.

The continued fall in cannabis stocks last year – they’ve been sliding since early 2021 – helped to prevent any marijuana CEOs from receiving total compensation of more than $10 million in 2022.

By contrast, two marijuana MSOs reported that total compensation for their CEOs exceeded $10 million in 2021, with a third coming very close to that level.

The AdvisorShares Pure US Cannabis ETF – which tracks major U.S. marijuana stocks – is currently trading as MSOS on the New York Stock Exchange Arca at roughly $5 a share, down from around $21 at the beginning of 2022.

High interest rates, inflation and the lack of major reform to federal laws governing cannabis have weighed on marijuana stocks.

And the continued softness in share prices suggests that this year’s compensation levels will remain under pressure.

“Last year’s information was based on a hotter marketplace than currently,” Jim Finkelstein, executive vice president and managing director at California-based human resources and compensation consulting firm FutureSense, told MJBizDaily in an interview.

“And so, as a result, you may see the value of what was reported being much, much higher than what’s being reported this year because they’re adjusting to the change in the market price and the value of equity.”

Finkelstein said it’s also important to note that some stock-option grants awarded in 2021 could still be vesting and wouldn’t be reflected in compensation tables provided by multistate operators for 2022.

Compensation consultants specializing in the cannabis industry warned that few other conclusions can be drawn from information shared in regulatory filings and not to take reported numbers at face value.

The industry remains illegal under federal law, for example, making it harder to compare the pay of marijuana CEOs with those in mainstream industries.

“You’re dealing with apples and oranges and gorillas,” Finkelstein noted.

High market capitalizations at cannabis companies, for example, don’t necessarily correspond with higher total compensation for CEOs. 

At New York-based Curaleaf Holdings, for example, which has the highest market capitalization at more than $2 billion, CEO Matt Darin’s total compensation for 2022 was $1.1 million.

By comparison, New York-based Columbia Care’s market capitalization is approximately $200 million.

Columbia Care CEO Nicholas Vita had a total compensation of $5 million in 2022. Meanwhile, Columbia Care’s planned merger with Chicago-based Cresco Labs, announced in 2022, remains uncertain.

Even drawing comparisons from year-to-year or between individual CEO pay packages can be difficult, said Fred Whittlesey, a consultant at Seattle-based Compensation Venture Group.

“It’s a young industry. There’s a lot of turmoil and a lot of turnover at the executive level,” he told MJBizDaily in an interview.

Marijuana companies must get creative to attract and retain top talent, Whittlesey said, and each one is taking its own approach when it comes to executive pay.

That said, cannabis industry compensation tends to weigh heavily toward equity-based compensation rather than cash, a move designed to incentivize and reward company leaders for growth.

For example, Florida-based Trulieve Cannabis Corp. noted in regulatory filings that 87% of 2022 compensation for CEO Kim Rivers was “at-risk,” which means it isn’t guaranteed because it’s tied to shareholder value and other key performance indicators.

“We believe compensation should be structured to ensure that a significant portion of the total compensation opportunity for our named executive officers is directly related to our performance and other factors that directly and indirectly influence shareholder value,” according to the company’s regulatory filing.

Stock, options values misleading

Reported stock and options values in regulatory filings can be particularly misleading.

“Stock options have a theoretical value, but it doesn’t end up in your bank account that year,” Whittlesey said.

Filings show Jim Cacioppo, the CEO, chair and founder of Florida-based multistate operator Jushi Holdings, was awarded more than $6.7 million worth of options in 2022, for example.

“However, that number is deceiving because it is calculated based on the fair value of stock options in 2022 under FASB accounting standards,” a spokesperson for Jushi said via email, referring to the Federal Accounting Standards Board, a private standards-setting body.

A total of 2.83 million options were granted at an exercise price of $1.93 per option, and another 3 million options were granted at an exercise price of $1.75, according to filings.

But Jushi’s stock – which trades on the U.S. over-the-counter markets as JUSH – is currently trading at around 45 cents a share, indicating that most of the options are currently “underwater” and effectively worthless.

The spokesperson also pointed out that Cacioppo was entitled to a $750,000 cash bonus in 2022 but opted instead to take $250,000 in cash as well as warrants to be issued at a later date valued at approximately $750,000.

Whittlesey said it’s also crucial to examine the vesting periods of stocks and options – an area where the marijuana industry is particularly creative when it comes to compensating its chief executives, he said.

Options usually vest in three to four years. But in the cannabis industry, vesting periods can be as short as three months.

For example, a third of Cacioppo’s 2,830,000 options vested on July 28, 2022, when the stock closed at the exercise price of $1.93.

Another third vested on Jan. 1, 2023. The stock closed at 73 cents on Jan. 3, the first day of trading of 2022, meaning the options were underwater.

The final third vest on Jan. 1, 2024.

Whittlesey said shorter vesting periods are designed to retain and attract talent in a uniquely challenged industry.

He said boards are effectively saying, “I’m not sure if the government’s going to put us out of business tomorrow.”

Taxation, production, inflation and regulations are only a few of the challenges CEOs are grappling with, Whittlesey added.

“Wouldn’t you like this job?”

Bonuses in a bad year

A number of marijuana industry CEOs were awarded hefty bonuses in 2022, despite many companies reporting lower-than-expected revenue in a tough year.

But key performance indicators (KPIs) in the cannabis industry aren’t necessarily tied to profitability of a company or revenue growth.

Kara Bradford, CEO and chief talent officer at Seattle-based recruitment firm Viridian Staffing, told MJBizDaily in an interview that bonuses can be tied to KPIs such as geographic footprint growth or years served in a role.

Peter Caldini, the former CEO of New York-based Acreage Holdings, wasn’t eligible for his special bonus last year under the company’s short-term incentive plan, which was based on pre-established targets for earnings before interest, taxes, depreciation and amortization (EBITDA), according to regulatory filings.

But Caldini was awarded a separate bonus totaling $2.5 million, paid out in $833,333 installments over three quarters.

“We consider your continued service and dedication to Acreage Holdings, Inc. (the “Company”) and find your continued efforts critical to the success of the Company,” board Chair Kevin Murphy wrote in a letter to Caldini dated July 11, 2022.

“To incentivize you to remain employed with the Company and to address any concerns about your job security, we are pleased to offer you a series of bonuses, as described in this letter agreement.”

Caldini stepped down as CEO in June, and former Chief Operating Officer Dennis Curran took the helm.

A spokesperson for Acreage told MJBizDaily via email that the company doesn’t comment on former employees.

Turnover and turmoil

Co-CEOs led both New York-based Ascend Wellness Holdings and Nevada-based Planet 13 Holdings in 2022.

Founder and former Ascend CEO Abner Kurtin stepped into the executive chair role last September after a battery charge against him was dropped.

Chief Financial Officer Daniel Neville and President and co-founder Frank Perullo took the helm as co-CEOs, which is why all three are listed in the table above.

In May, John Hartmann was appointed CEO of the company.

Ascend did not respond to MJBizDaily requests for comment.

Whittlesey warned that having two CEOs can be a sign of weakness in governance.

From a compensation standpoint, he said, co-chief executives could receive half of a CEO package.

On the other hand, both employees could be capable of being a CEO and should be compensated accordingly.

“Now we’re in a conundrum, because there’s two of them,” Whittlesey said.

“And it’s not fair to the company or the shareholders to pay for two CEOs.”

Planet 13’s Robert Groesbeck and Larry Scheffler have served as co-CEOs since 2018.

Each earned a $500,000 base salary and another $254,000 under the company’s non-equity incentive plan in 2022.

The amount was awarded for “corporate objectives and key metrics applicable to the executive, respectively, and is reviewed and approved by the Compensation Committee before payment,” according to regulatory filings.

Finkelstein declined to comment on a specific company, but he said it’s common for co-CEOs to work in hybrid roles as they transition from a founder-led business to a more mature company.

“They are all trying to figure it out, and they need to be allowed to experiment with that without judgment,” he said.

Source: https://mjbizdaily.com/falling-stock-prices-force-down-cannabis-industry-ceo-pay-in-2022/

Business

EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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AI & Technology

Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations

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Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).

The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.

Trial Push Despite Multi-Million Euro Settlement

The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.

Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.

A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.

Allegations of VAT Evasion Through Marketplace Sellers

At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.

Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.

Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.

Italian Government Named as Affected Party

In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.

Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.

Multiple Investigations Add to Pressure

The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.

Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.

In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.

Amazon Denies Allegations

Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.

Broader Impact on Europe’s Digital Economy

If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.

With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.

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Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

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Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.

Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.

Root Cause: IndiGo’s Market Monopoly

The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.

This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.

Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.

Government Intervention and Regulatory Weakness

The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.

Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.

The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.

If Telecom Giants Fail: A National Paralysis

The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?

If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.

In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.

E-commerce Monopoly: Another Fragile Ecosystem

The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.

Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.

A Wake-Up Call for Regulators

The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.

As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.

Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.

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