In light of the drop in AMC stock, Adam Aron declared today that he has asked the theater chain’s board of directors to freeze his pay until 2023.
The biggest inflation in 40 years will result in significant compensation increases from businesses in 2023. However, while our stockholders are suffering, I do not want “more.” I thus advised the AMC Board to freeze both my goal cash and target stock remuneration for 2023 and to red circle them. He tweeted, “NO INCREASE.
Additionally, he claimed to have urged 15 to 20 senior executives of AMC to forgo a raise in their monetary compensation in 2023. Executives, to their credit, typically consent when CEOs “ask.” I truly appreciate them doing it. The management team at AMC is extremely committed.
When asked if there would be pay rises, he responded, “Absolutely yeah.”
Only those at the top are being asked to make financial sacrifices, according to us. It is challenging to find employees. We have to compensate our employees fairly. In fact, the hourly pay of our “film crew” (those employed by our American theaters) have been increasing by double digit percentages.
“The correct thing to do is to refrain from giving people at the top raises. On Twitter, I have supporters and detractors who support or criticize my decisions. But be aware that my intentions are sincere. I do my best to guide AMC through the traumatic fallout of this terrible pandemic, Aron wrote.
The specifics of his 2022 package are unknown because CEO remuneration is disclosed in SEC proxy papers every spring for the year prior. In 2022, inflation rose and reached a 40-year high. According to the most recent data, it appears to have marginally decreased in November compared to October.
Aron received a total of $18.9 million in pay in 2021, which included a base salary of $1.45 million, $6 million in cash (non-equity incentive plan) compensation, and $11.4 million in stock awards. With a $1.1 million salary, a $5 million cash bonus, and around $14.8 million in stock awards, he made $20.9 million in 2020.
After a horrific run, AMC shares are down another 8.3% today, trading at just over $4, from a 52-week high of $34. AMC Preferred Equity Units (APEs) were first introduced in August as a new currency to pay down debt or pursue acquisitions. After a more difficult ride, their price is now up 7.5% at $1.86.
Aron this week disclosed preparations for a special shareholder vote on authorizing the conversion of APE units to AMC common shares in order to raise equity using AMC stock in addition to an arrangement with Antara Capital to decrease existing debt. On that, he requires shareholders to vote in favor, which is still up for debate.
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