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AMC Entertainment chief executive Adam Aron saw compensation last year totaling $23.7 million, up 25% from $18.9 million in 2021, according to an SEC filing Friday. That included a base salary of $1.5 million, a $6 million cash bonus, and stock awards valued at $16.2 million.
“Despite challenging industry and economic conditions, as has been the case since the onset of the COVID-19 pandemic, the Company remained vigilant, flexible, and focused on maximizing results. The extraordinary efforts and creativity of our management team has allowed AMC to weather the storm while some of our competitors were forced to permanently close or seek bankruptcy protection,” the giant movie theater chain said in an amended 10K, or annual report, filing.
AMC rival Cineworld, parent of Regal, filed for bankruptcy last fall in Texas.
Despite a recovering box office, AMC has significant debt and is still vulnerable to swings. It’s waiting for a legal decision in Delaware Chancery Court this summer — related to the settlement of a lawsuit — that would provide a cushion by allowing the company to raise significant cash if needed. AMC had proposed a series of moves, that were approved by a majority shareholders, aimed at getting its finances and stock price on more solid footing. A few shareholders had sued to block the measures, but then settled with the company. A judge needs to approve the settlement.
“I will be more confident after this, after we have the ability to implement the shareholder vote,” Aron said in an interview with Deadline last week at big exhibitor conference CinemaCon.
“When you have the flexibility to raise capital if you need to, it’s really important. Whether we will need to or not depends on what … the box office is this year.”
“In the view of the Compensation Committee, management successfully undertook major initiatives to reduce and control costs, raise additional capital, restructure a substantial portion of the Company’s debt, renegotiate arrangements with studios and landlords, operate theatres safely, promote attendance, and lay the groundwork to seek opportunities to diversify the business,” the filing said.
Back in December, Aron said he would freeze his compensation for 2023 given the decline in AMC stock. “Biggest inflation in 40 years, so in 2023 companies will grant large % salary raises. But I do not want “more” when our 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,” he tweeted. Pay for 2022 hadn’t yet been disclosed, so the freeze level wasn’t clear.
Aron said he also said then he had asked 15 to 20 of AMC’s senior executives to forego an increase to their cash salaries for 2023. “When CEO’s “ask,” execs to their credit usually agree. I sincerely thank them for that. AMC has a very dedicated management team.”