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AMC Entertainment Holdings Chief Executive Officer Adam Aron asked the theater chain operator's board to freeze his compensation next year because of a sharp drop in the company's shares. "I do not want 'more' when our shareholders are hurting," Aron, who earned $18.9 million in 2021, said in a series of tweets urging other top AMC executives to also forego their hikes.
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In April 2022, the theater chain disclosed that Aron was paid $18.9 million in 2021, down from $20.9 million in overall compensation in 2020 when theaters were mostly closed for months amid the pandemic and AMC was forced into major debt restructuring. He said he had asked his top corporate officers, or between 15 and 20 executives, to forego any 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,” Aron added.
Why it matters
Shares of the company have declined more than 75% this year as the rise of streaming and fewer blockbuster releases hit footfall at its more than 900 theaters, driving up cash burn and losses. AMC has tried to ride out the pressure by raising cash and taking advantage of the retail interest it got during last year's meme stock rally. Earlier this month, the company said it would raise $110 million in new equity capital through the sale of its preferred stock and proposed a reverse stock split.
