The year 2022 has been cruel to every industry, whether it is the tech sector or the entertainment, all have faced major losses.
Among these companies is AMC Entertainment which has also faced a similar kind of downtrend in the running year.
As the year is coming to a close and the companies are looking back at their performance, all they see are shareholders who are not happy at all.
Therefore, the companies are trying their best to make it up to their shareholders to keep them together.
It is the shareholders that have kept suffering major losses but they have remained loyal to their companies.
With this realization, the CEO of AMC Entertainment has made a move so the company’s shareholders know that they are not alone in this bad situation.
AMC CEO Opts for Compensation Freeze
Adam Aron, the CEO at AMC Entertainment has announced that he has requested for his compensation to be frozen.
He has urged other boards of directors at the theater chain to do the same right from the beginning of 2023.
As per him, the company’s stocks are constantly facing a decline so they should be on the same page as the shareholders.
He has requested that his entire compensation should be frozen for the entire year of 2023.
Comments by Adam Aron
Adam Aron recently posted a tweet where he revealed that he and the entire company feel how their shareholders are feeling right now.
They have to understand the losses their shareholders have faced and the economy is already not doing well.
He tweeted that the year 2022 has seen the worst inflation hike in the past four decades. This is extremely tough not only for the shareholders but for their employees as well.
He added that in the year 2023, they will be granting salary raises that will be based on percentage. Although he was optimistic about the employee salary raises, he was not happy with his own situation.
He stated that he does not want any compensation in the year 2023 and he will not let any raises applied to his salary in the upcoming year as well.
He added that he can think of getting higher paychecks and compensations when the shareholders of their company keep hurting and suffering.
Aron went on to request the rest of the AMC board members to join him and freeze their target stock and target cash in the year 2023.
The CEO addressing the board of directors meant that he was asking up to 20 executives to stand with him and not take their salary raises in the year 2023.
The AMC executive has made it clear that they are only talking about their salary freeze. They are not going to ask or force their employees to do the same.
Their salaries will continue growing as they should in the upcoming year, they want to make it up for them. They will increase their salaries at even higher percentages.
Aron’s Compensation for 2021
For the year 2021 alone, the compensation Aron had made was worth $18.9 million.
The compensation included the $1.45 million base salary. Then it was the compensation of $6 million for the non-equity incentive plan followed by the $11.4 million worth of stock awards.
In the year 2020, Aron earned compensation that was worth $20.9 million. This includes $1.1 million in base salary, $14.8 million earned in the form of stock awards, and $5 million worth of cash bonus.
In the previous trading session, the share prices for AMC Entertainment had taken an 8.3% hit. However, Aron’s tweet worked like a charm and earned back some of the losses the company had incurred.
In the latest trading session, the company’s shares surged by 1.2%. At the time of writing, AMC International’s shares are trading at $3.95 apiece.
Editorial credit: IgorGolovniov / Shutterstock.com