Business

AMC Entertainment CEO Asks Board To Freeze His Pay As Stock Tanks – Deadline

Adam Aron mentioned at the moment he’s requested the theater chain’s board of administrators to freeze his compensation for 2023 given the decline in AMC stock.

“Biggest inflation in 40 years, so in 2023 companies will grant large % salary raises. But I do not want “more” when our shareholders are hurting. So, I really useful to the AMC Board to purple circle and freeze each my goal money and goal stock pay for 2023. NO INCREASE,” he tweeted.

He mentioned he additionally requested 15 to twenty of AMC’s senior executives to forego a rise to their money salaries for 2023. “When CEO’s “ask,”execs to their credit score normally agree. I sincerely thank them for that. AMC has a really devoted administration group.”

Asked if staff would get raises, he mentioned “absolutely yes.”

“We are asking for financial sacrifice only from those at the very top. It is hard to recruit workers. We must pay our people fairly. Indeed, wages for our “film crew” (hourly employees at our U.S. theatres) have been rising by double digit percentages.”

“No increase for those at the top is the right thing to do. I have fans and bashers on Twitter, those who agree or disagree with my decisions. But know this: my motives are pure. I try as best as I know how to lead AMC through the painful aftermath of this horrid pandemic,” Aron wrote.

CEO compensation is revealed in SEC proxy statements every spring for the earlier earlier than, so the small print of his 2022 package deal are usually not identified. Inflation soared in 2022, hitting a 40-year excessive. It appeared to have tapered down barely in November, from October, in response to the most recent knowledge.

Aron’s compensation totaled $18.9 million in 2021, together with a base wage of $1.45 million; money (non-equity incentive plan) compensation of $6 million; and stock awards value $11.4 million when granted. He earned $20.9 million in 2020 with a $1.1 million wage, $5 million money bonus and about $14.8 million in stock awards.

AMC shares are down one other 8.3% at the moment at simply over $4 after a brutal run – down from a 52-week excessive of $34. The value of AMC Preferred Equity Units (APEs) are up 7.5% at $1.86 after a good harder highway since they have been first launched in August as a brand new forex to pay down debt or pursue acquisitions.

Aron final week introduced an settlement with Antara Capital to cut back excellent debt and plans for a particular shareholder vote on approving the conversion of APE models to AMC widespread shares on the way in which to elevating fairness through the use of AMC stock. He wants a shareholders to vote sure on that, which continues to be a question. 

Back to top button