AMC Entertainment CEO Adam Aron asks the board to freeze his salaries; “I don’t want our shareholders to be in pain anymore”

Adam Aron said today he has asked the theater chain’s board to freeze his 2023 fee amid the drop in AMC shares.

“Biggest inflation in 40 years, so companies are giving large percentage salary increases in 2023. But I don’t want “more” if our shareholders suffer. So I advised the AMC board to red circle and freeze both my cash and stock target for 2023. NO RAISE,” he tweeted.

He said he has also asked 15 to 20 AMC executives to refrain from raising their cash salaries for 2023. I thank them very much for that. AMC has a very dedicated management team.”

When asked if the staff would get a raise, he said “absolutely yes”.

“We only ask for financial sacrifices from those at the top. Recruiting workers is difficult. We must pay our people fairly. In fact, wages for our “film crew” (hourly employees in our US theaters) rose by double digits.

“No increase for the top is the right thing. I have fans and bashers on Twitter who agree or disagree with my decisions. But know this: My motives are pure. I am trying my best to guide AMC through the painful aftermath of this terrible pandemic,” Aron wrote.

The CEO’s salary is announced each spring in the SEC’s proxy statements for the previous year, so the details of his 2022 package are unknown. Inflation soared in 2022, reaching the highest level in 40 years. According to the latest data, it appeared to have decreased slightly from October in November.

Aron’s total compensation for 2021 was $18.9 million, including a base salary of $1.45 million; Cash compensation (non-equity incentive plan) of $6 million; and $11.4 million in stock awards when granted. He earned $20.9 million in 2020 with a salary of $1.1 million, a $5 million cash bonus and approximately $14.8 million in stock awards.

AMC shares are down another 8.3% today after a relentless run to just over $4 — from a 52-week high of $34. The price of AMC Preferred Equity Units (APEs) is down 7 after an even tougher .5% move to $1.86 since they were first introduced in August as a new currency to pay off debt or make acquisitions.

Last week, Aron announced an agreement with Antara Capital to reduce outstanding debt and plans a special shareholder vote to authorize the conversion of APE units into AMC common stock en route to the equity acquisition using AMC stock authorization . He needs shareholders to vote for it, which is another question.