AMC Entertainment CEO Adam Aron isn’t asking for a pay rise in 2023
The chief executive officer of AMC Entertainment Holdings Inc. asked the theater chain’s board of directors to freeze its pay for next year, and he has urged more than a dozen of his top lieutenants to make a similar sacrifice while hurting shareholders.
Adam Aron, the CEO, said on Twitter Tuesday that he had asked the board to keep his cash and stock payments constant for 2023. According to documents, he earned $18.9 million in salaries and other compensation last year.
Shares of the chain, the largest in the US, have fallen more than 70% this year. The company became a popular meme stock among retail investors in 2021, going from under $2 to over $45. However, it has since declined, falling 6.9% to $4.10 as of 11:56 am in New York.
“I don’t want ‘more’ if our shareholders suffer,” tweeted Aron.
The executive said he also asked his top officials, 15 to 20 officers, to forego pay increases in 2023.
Box office sales in North America are up 68% this year to $7.23 billion, according to Comscore Inc., recovering from the lows seen during the Covid-19 pandemic. Revenue remains below 2019 levels, however, and AMC lost $685.9 million for the nine months of 2022.
The stock fell last week after management announced plans to convert preferred stock to common stock and perform a 1-for-10 reverse stock split. AMC also raised $110 million through the sale of preferred stock units to debtor Antara Capital LP at a weighted average price of 66 cents each, below market value.
Our new weekly Impact Report newsletter explores how ESG news and trends are shaping the roles and responsibilities of today’s leaders. Subscribe here.
