AMC Entertainment, the country’s largest theater chain, announced on Friday that it is giving CEO Adam Aron and other executives “extra cash rewards for special incentives” in recognition of the challenge they faced in giving up the contested company in the past pandemic year control a financial roller coaster.
Corporate partners and theater management also receive special bonuses, with all payouts coming from an authorized pot of $ 8.3 million. Today’s SEC filing only requires the company to split its top five executives.
Aron will receive $ 3.75 million; Sean Goodman, Chief Financial Officer, $ 507,500; John McDonald, EPP US / Canada, $ 194,550; Elizabeth Frank, VP Worldwide Programming and Chief Content Officer, $ 180,650; and Stephen Colanero, EVP, CMO, $ 173,875.
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The company said the rewards are to “recognize the extraordinary efforts of employees to keep the company’s business alive and to maintain the value of shareholders during the COVID-19 pandemic, to foster continued engagement and loyalty and incentives for ours Management and our employees during the ongoing and unprecedented difficult business conditions. ”
When the theaters closed in March last year, AMC’s top executives, including Aron, agreed to cut their cash salary by 15% and cut other compensation over a three-year period in order to receive shares that only are vested if the price doubles or triples. Aron said he would lose $ 1.6 million as a result of the wage cut. With the theaters dark, the company eventually had to take about 30,000 people off and slowly got them going again when theaters reopened in parts of the country.
AMC’s troubles were among the most public and painful in the entertainment industry as revenues dried up and Aron faced heavy debts, landlords and a pandemic that dragged on. The company renegotiated leases and restructured its debt several times, raising just enough money to keep Chapter 11 in the rearview mirror.
Successful winter funding gave him more runway and then turned into an unusual moment on Wall Street. Retail investors in Reddit chat rooms became champions of AMC stock as some sort of sidekick of GameStop in late January and aggressively bought it. This sparked a cascade of events that helped significantly reduce debt once vaccines were introduced and infection rates began to decline.
In other good news for the exhibition, New York City will open theaters on March 5th, and some believe LA may not be far behind.