AMC Entertainment CEO Adam Aron said his 2023 compensation package will be $25.4 million, up from $23.7 million a year ago, boosted by stock awards worth $17.9 million along with a $6 million cash bonus and $1.5 million in base pay. Appeared.
In a proxy statement filed with the SEC, the compensation committee of the world's largest exhibitor noted progress on several fronts in a challenging environment for the theater industry last year as the Hollywood strike halted the initial post-COVID-19 recovery.
But the stock has plummeted from its meme-stock highs, and there has been some backlash on CEO pay at AMC (and other entertainment companies). Aron took a quick look at X, formerly Twitter, and pointed out that the numbers weren't what they seemed.
“According to our draft proxy, I received AMC stock valued at $17.9 million using the methodology required by the SEC in 2023 (not available for immediate sale). As of yesterday's close, the actual value is $1,345,000. “So my current valuation of my compensation was reduced by $16.5 million.” The stock ended the week at about $3.
Aron and the board said in February they had agreed to cut target compensation by 25% this year, in response to comments from disgruntled retail shareholders. This means the target amount he can receive will be lower.
The proxy confirmed business performance during difficult times, including revenue growth, positive adjusted Ebitda (earnings before interest, taxes, depreciation and amortization), paying down AMC's significant debt and raising cash through share sales. AMC Theaters Distribution launched and concert film rights secured Taylor Swift I The Eras Tour – This helped maintain the box office in the fourth quarter. Renaissance: Beyonce's Movie. We continued upgrading our laser projectors and expanded retail sales of AMC brand popcorn.
A slow start to the 2024 box office has cut into the exhibition outlook with fewer wide releases, but things are expected to improve and rebound in the second half of the year.
CFO Sean Goodman's salary was the next highest, totaling $6.7 million, according to a proxy listing the salaries of the company's five top executives.