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AMCEntertainment CEO Adam Allen Compensation totaled $23.7 million last year, up 25% from $18.9 million in 2021, according to a filing with the Securities and Exchange Commission on Friday. That includes a base salary of $1.5 million, a cash bonus of $6 million and stock awards worth $16.2 million.
“Despite challenging industry and economic conditions, as has been the case since the outbreak of the COVID-19 pandemic, the company remained vigilant, nimble and focused on achieving maximum results. The extraordinary hard work and creativity of our management team enabled AMC to weathering the storm while some of our competitors were forced to close permanently or seek bankruptcy protection,” the large movie theater chain said in a revised 10K or annual report.
AMC rival Cineworld, its parent company rich manfiled for bankruptcy in Texas last fall.
While the box office is recovering, AMC is heavily indebted and remains vulnerable to volatility. It is awaiting a legal decision this summer from a Delaware Chancery Court related to the lawsuit settlement, which would provide a cushion by allowing companies to raise large amounts of cash if needed. AMC has proposed a series of moves, approved by a majority of shareholders, aimed at putting its finances and stock price on stronger footing. Some shareholders sued to block the measures, but then settled with the company. A judge needs to approve the settlement.
“After we have the ability to implement a shareholder vote, I’m going to be more confident,” Aron said in an interview with Deadline last week at CinemaCon, the big exhibitors’ conference.
“It’s really important that you have the flexibility to raise money if you need to. Whether we need to or not depends on … the box office this year.”
“In the Compensation Committee’s view, management has successfully undertaken significant initiatives to reduce and contain costs, raise additional capital, restructure much of the company’s debt, renegotiate arrangements with studios and owners, operate theaters safely, increase attendance and lay the groundwork for the lay the groundwork to pursue opportunities to diversify the business,” the document said.
Back in December, Allen said he would freeze his pay through 2023 in light of declining earnings. AMC stock“The biggest inflation in 40 years, so the company will have a big salary increase by 2023. But when our shareholders are hurting, I don’t want “more”. Therefore, I recommend that the AMC board draw a red circle in 2023 and Freeze my target cash & target stock compensation. No increase,” he tweeted. Compensation for 2022 has not been disclosed, so the level of the freeze is unclear.
Allen said he also said at the time that he had asked 15 to 20 of AMC’s top executives to forego a 2023 cash salary increase. For that I sincerely thank them. AMC has a very dedicated management team. “
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