AMC Entertainment chief executive Adam Aron saw a 2023 compensation package of $25.4 million — up from $23.7 million a year ago – inflated by stock awards worth $17.9 million along with a cash bonus of $6 million bonus and a $1.5 million base salary.
In a proxy statement filed with the SEC, the compensation committee of the world’s biggest exhibitor cited progress on several fronts last year in a challenging climate for theatrical as Hollywood strikes interrupted a nascent post-Covid recovery.
However, shares have tanked from their meme-stock highs and there’s been some pushback on CEO pay at AMC (and other entertainment companies). Aron was quick to turn to X, formerly Twitter, noting that the number is not what it seems.
“Our draft proxy shows I was awarded AMC stock in 2023 (that I can not sell any time soon) valued using SEC required methodology at $17.9 million. At yesterday’s closing share price, it is actually worth $1,345,000. So my compensation — valued presently — was $16.5 million less.” The shares ended the week at about $3.
Aron and the board said in February they’d agreed to cut his target compensation by 25% this year in a nod to disgruntled retail shareholders. It means the target amount that he’d be eligible for would be lower.
The proxy ticked off management accomplishments during a difficult time including rising revenue, positive adjusted ebitda (earnings before interest, taxes, depreciation and amortization), chipping away at AMC’s hefty debt, and raising cash through equity sales. The company launched AMC Theatres Distribution and secured rights to concert films Taylor Swift I The Eras Tour – which helped keep the box office afloat in the fourth quarter — and Renaissance: A Film By Beyonce. It continued a laser projector upgrade and expanded retail sales of AMC branded popcorn.
A slow start to the box office in 2024 with fewer wide releases had clipped projections for exhibition although things may be looking and are expected to rebound in the second half.
CFO Sean Goodman’s package, the next highest, totaled $6.7 million, according to the proxy, which outlines the pay of a company’s five top paid executives