AMC CEO Adam Aron announced he will not be receiving a pay raise for the new year.
His decision comes as shares of AMC Entertainment stock slide just under $4 per share.
The movie theatre chain leader said on Twitter that he does not want ‘more’ when 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.”
And shareholders are cheering the CEO for his noble gesture.
Adam Aron earned $18 million in salary and compensation last year, but he’s come a long way from his 2016 salary of only $10 million.
The CEO was able to capitalize on the ‘meme stock’ surge in 2021 earning $41 million while retail investors held their stock for their lives.
At the time, CFO Sean Goodman had sold all of his shares before receiving more stock from their executive compensation package.
At the time, representatives from AMC declined to comment.
Here’s the latest AMC news.
Adam Aron Becomes Shareholder’s Savior
“I think that while Adam Aron clearly communicated his intent to liquidate some of his position in AMC shares by year-end (2021), many investors were caught off-guard by the extent to which he sold shares between early November and mid-December,” said Alicia Reese, an analyst at Wedbush.
“Sean Goodman of course already has more shares since he sold in November (2021), and all of the executives will continue to accumulate more shares as part of their compensation packages, but they’re walking a fine line by cashing in on the elevated share price while the retail shareholders have committed to holding at all costs,” she said.
Today, the CEO has forfeited a pay raise for 2023 in both cash and stock.
Many shareholders are happy to hear Adam Aron will be sacrificing his pay raise to make shareholders feel better.
Adam Aron says his motives are pure.
“I try as best as I know how to lead AMC through painful aftermath of this horrid pandemic.”
Many shareholders have made Adam Aron their beloved savior.
This will prove to be beneficial to the company as loyalists become the foundational customers of the movie theatre chain.
Others on the other hand beg to differ.
AMC stock is currently trading at $3.84 with a market cap rounded to $2 billion.
What are your thoughts on this proposal?
Do you think Adam Aron’s pay freeze is noble?
Is this just a way to tame hopeful shareholders?
How does a pay freeze bring AMC one step closer to a short squeeze?
Leave your thoughts below.
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