CEO of AI Data Center Leader Secures $220 Million Long-Term Compensation Package

Applied Digital Corp. (Nasdaq: APLD) CEO and Board Chairman Wes Cummins was granted a substantial equity-based compensation package on January 6. The award comprises 1.5 million restricted stock units (RSUs) and 4.5 million performance stock units (PSUs), each convertible 1-for-1 into common shares. Based on the current share price of roughly $37, the package’s maximum potential value is about $220 million (approximately KRW 2.9 trillion). The actual value Cummins realizes will depend on his continued service and the attainment of share-price targets over the next five years.

The RSUs vest according to the following schedule: 300,000 shares on January 6, 2027, with the remaining 1.2 million shares vesting in 150,000-share installments every six months through January 2031. The 4.5 million PSUs vest in three equal tranches over five years when the 90-day average share price reaches $50, $75, and $100, respectively; vesting is also contingent on Cummins remaining employed full-time.

In its disclosure, the company emphasized that this compensation structure closely aligns Cummins’s interests with long-term shareholder value and stock-price performance. Following the grant, Cummins’s direct ownership exceeds 4.3 million shares. When combined with indirect holdings through Cummins Family Ltd., 272 Capital LP and previous RSU awards, his stake in Applied Digital is significant.

Applied Digital has recently drawn market attention thanks to strong financial results and new customer acquisitions driven by its high-performance AI and HPC data-center operations. In early January, the company reported year-over-year revenue growth of more than threefold and set a target of achieving $1 billion in operating income (about KRW 1.3 trillion) within five years. It also disclosed ongoing negotiations for a large-scale lease with an investment-grade hyperscaler that would require up to 900 megawatts of power, further fueling the AI data-center growth story.

Headquartered in Dallas, Texas, Applied Digital is a data-center infrastructure provider specializing in high-performance computing and artificial intelligence. Leveraging proprietary data-center designs and liquid-cooling solutions, it serves hyperscale clients as well as cryptocurrency-mining and GPU-cloud operators. Cummins, who co-founded the company and serves as CEO, has led its transformation from Applied Blockchain to Applied Digital in 2022, repositioning it as an AI and HPC-focused enterprise.