According to an SEC filing, AMC Entertainment CEO Adam Aron’s compensation in 2021 reached $23.7 million, which is a 25% increase from the previous year. The compensation included a $1.5 million base salary, a $6 million cash bonus, and $16.2 million in stock awards. The company praised its management team for remaining vigilant, flexible, and focused on maximizing results, allowing AMC to weather the storm while some of its competitors were forced to permanently close or seek bankruptcy protection.
AMC’s Financial Status
Despite a recovering box office, AMC still has significant debt and is vulnerable to market swings. The company is waiting for a legal decision in Delaware Chancery Court this summer, which would provide a cushion by allowing the company to raise significant cash if needed. AMC had proposed a series of moves aimed at getting its finances and stock price on more solid footing, which were approved by a majority of shareholders. A judge needs to approve the settlement.
CEO’s Compensation Freeze
In December, Aron said he would freeze his compensation for 2023 due to the decline in AMC stock. He also asked 15 to 20 of AMC’s senior executives to forego an increase to their cash salaries for 2023. “When CEO’s ‘ask,’ execs to their credit usually agree. I sincerely thank them for that. AMC has a very dedicated management team,” he said.
Leave a Reply