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.
Also read: What an AMC 1-for-10 Reverse Stock Split Would Mean for Shareholders
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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About The Author
Two Words (Lee Iacocca)
He took a dollar a year till he brought Chrysler back from the brink of destruction.
Are you kidding me!!! Making 18-million dollars a year plus huge amounts of stocks annually, and he thinks no raise and no increase on the annual number of stocks he receives makes him a Saint!!
Adam Arron is all for the company and the board members.
AMC Retail Stockholders are just collateral damage, from his trek to save another failing company and keep up his reputation.
Not nearly enough Mr. Aron. Your stocks value is being suppressed illegally. Your shareholders are paying the price. Fucking do something about it.
I’m impressed by his leadership and I believe Adam Aaron is good man and doing the right things not just with the pay freeze but he’s also instilling value. AMC is a great company, I just took my fam of 7 to see BP2 there yesterday and we will most likely see another movie this week. Why am I saying this because while we were there we saw trailers for 2023 and we know of 6 movies we will be seeing over the next 6 months without question and others will as well and everyone is going to see AMC make big profits in 23, Congress is also locked up and won’t be able to move big legislation this will help inflation, also good for movie goers which is good for shareholders.My point you have product that will draw large crowds in the year ahead and large crowds will increase in profits, that coupled with the debt decrease that AA has done you will see share evaluations go up in the new year.
The entire board and top leadership should all do the same. Why should they benefit when all investors are hemorrhaging money. I wish I never bought this stock.
Realmente cree que con esa decisión va a cambiar algo? No soy partidario de Adan A porque cuando dividió la acción en AMC /APE su empresa ganó mucho dinero pero les facilitó a los fondos seguir bajando el precio de ambas, ahora nos encontramos ahogados, no soy fan de él todo lo contrario me parece que se ha sabido aprovechar de la buena voluntad de los minoristas
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