In a recent statement shared on X, AMC Entertainment Holdings Inc. CEO Adam Aron tackled ongoing speculation and calls from shareholders urging him to purchase additional AMC shares to demonstrate confidence in the company.
Aron clarified that U.S. securities laws currently prohibit him from doing so, citing possession of material non-public information (MNPI).
He provided four key points to address the “FUD” (fear, uncertainty, and doubt) circulating among investors.
First, Aron emphasized his substantial personal investment in AMC.
He currently owns 975,310 AMC shares outright and has an economic interest in an additional 3,640,397 shares at target vesting, totaling over 4.6 million shares.
“That already is a lot of confidence,” Aron noted, asserting that his stake surpasses that of any other individual AMC shareholder he is aware of.
Second, Aron underscored his commitment to shareholders by stating he has not sold a single AMC share in over three years.
“I ride with you,” he told investors, signaling his alignment with their interests.
Third, he highlighted that more than two-thirds of his total target compensation as CEO is tied to AMC stock rather than cash.
Aron stressed that these shares are earned through his efforts, not simply granted.
“If I did not value AMC stock, I could choose to work elsewhere, with more of my compensation coming in cash,” he explained, reinforcing his belief in the company’s future.
Finally, and most critically, Aron addressed the legal barriers preventing him from buying additional shares.
He disclosed that he has been in possession of MNPI for some time, which under U.S. securities law makes it illegal for a CEO of a publicly traded company to purchase its stock.
“Illegal. Period. No ifs, ands or buts,” he stated, clarifying that this restriction is non-negotiable.
Aron’s remarks aim to reassure investors of his confidence in AMC while explaining the regulatory constraints that govern his actions.
His transparency underscores the complexities of insider trading laws and the responsibilities of corporate leaders in publicly traded companies.
But I’m curious to know what you think — leave your thoughts below.
AMC Entertainment stock is currently trading at $2.78, down nearly 31% this year-to-date at the time of this writing.
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