Thursday, May 30, 2024

AMC Entertainment CEO Adam Aron earns $24 million in 2022, up 25% – Deadline

AMC Entertainment Chief Executive Adam Aron saw compensation last year at $23.7 million, up 25% from $18.9 million in 2021, according to an SEC filing Friday. This included a base salary of $1.5 million, a $6 million cash bonus and stock awards worth $16.2 million.

“Despite challenging industry and economic conditions, as has been the case since the onset of the COVID-19 pandemic, the Company remained alert, flexible and focused on maximizing results. The extraordinary efforts and creativity of our management team have allowed AMC to weather the storm while some of our competitors were forced to close permanently or seek bankruptcy protection,” the giant movie theater chain said in an amended filing of 10 thousand, or annual report.

AMC rival Cineworld, parent of Regal, filed for bankruptcy last fall in Texas.

Despite the box office recovery, AMC has significant debt and is still vulnerable to fluctuations. It is awaiting a legal ruling in the Delaware Court of Chancery this summer — related to the settlement of a lawsuit — that would provide a cushion allowing the company to raise significant cash if needed. AMC had proposed a series of moves, approved by a majority of shareholders, to put its finances and share price on a more solid footing. Some shareholders had sued to block the measures, but then settled with the company. A judge must approve the settlement.

“I’ll be more confident after that, once we have the ability to implement the shareholder vote,” Aron said in an interview with Deadline last week at the major exhibitor conference CinemaCon.

“When you have the flexibility to raise capital if you need to, it’s really important. Whether we need it or not depends on how the box office is this year.”

“In the view of the Compensation Committee, management successfully undertook major initiatives to reduce and control costs, raise additional capital, restructure a significant portion of the Company’s debt, renegotiate agreements with studios and owners, to operate theaters safely, to drive attendance and lay the groundwork to pursue opportunities to diversify the business,” the filing said.

In December, Aron said he would raise his compensation for 2023 given the decline in AMC’s stock. “The biggest inflation in 40 years, so in 2023 companies will increase wages by huge %. But I don’t want “more” when our shareholders are hurt. Therefore, I recommended to the AMC Board to circle in red and freeze both target cash and target stock pay for 2023. NO INCREASE,” he tweeted. The payment for 2022 had not yet been announced, so the extent of the freeze was not clear.

Aron said he also said then that he had asked 15 to 20 of AMC’s top executives to forgo a cash pay raise for 2023. “When the CEO ‘asks,’ their executives usually fall agreed. I sincerely thank them for this. AMC has a very dedicated management team.”

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