Amid a sharp drop in the company’s shares, CEO of AMC Entertainment, Adam Aron, has asked the AMC board to freeze his compensation next year. As per Reuters, Aron made the statement this Tuesday as the company’s shares declined by more than 75% this year.
Aron even made a tweet from his account saying, “I do not want ‘more’ when our shareholders are hurting. So, I recommended to the AMC Board to red circle and freeze both my target cash and target stock pay for 2023. NO INCREASE. ”
Shares of the firm have fallen more than 75% this year as fewer blockbuster movies and the surge of streaming have reduced foot traffic at its more than 900 cinemas, increasing losses and cash burn.
Reportedly, Aron, who earned around $18.9 million in 2021, in a series of tweets urged other top AMC executives to also forego their hikes.
AMC has attempted to withstand the strain using many ways, especially by raising money and making use of the retail enthusiasm it attracted during last year’s viral stock surge. However, the situation still seems pretty complex.
Earlier this month, the business suggested a reverse stock split and announced it will sell its preferred shares to obtain $110 million in fresh equity capital.
Following preliminary conversations with certain lenders, the movie theatre chain also said last week that it was no longer in talks to purchase several cinemas held by the insolvent Cineworld Group.
Value our content... contribute towards our growth. Even a small contribution a month would be of great help for us.
Since five years, we have been serving the industry through daily news and stories. Our content is free for all and we plan to keep it that way.
Support HRKatha. Pay Here (All it takes is a minute)
