AMC Entertainment CEO Adam Aron sees $23.7 million pay package in 2022, up 25%

AMC Entertainment CEO Adam Aron earmarked a total of $23.7 million in compensation last year, up 25% from $18.9 million in 2021, according to an SEC filing from Friday. It included a $1.5 million base salary, a $6 million cash bonus and $16.2 million in stock awards.

“Despite challenging industrial and economic conditions, such as those seen since the start of the COVID-19 pandemic, the company has remained vigilant, flexible and focused on maximizing results. “The extraordinary effort and creativity of our management team has enabled AMC to weather the storm while some of our competitors have been forced to close permanently or file for bankruptcy protection,” the giant movie theater chain said in an amended 10K, or annual, report said.

AMC rival Cineworld, Regal’s parent company, filed for bankruptcy in Texas last fall.

Despite a recovering box office, AMC has significant debt and remains vulnerable to volatility. It is awaiting a legal decision in Delaware Chancery Court this summer — related to the settlement of a lawsuit — that would provide a buffer by allowing the company to raise significant cash if needed. AMC proposed a series of moves, approved by a majority shareholder, to put its finances and share price on a firmer footing. Some shareholders sued to block the measures, but then settled with the company. A judge must approve the settlement.

“I will be more confident afterwards after we have the opportunity to implement the shareholder vote,” Aron said in an interview with Deadline at the major exhibitors’ conference CinemaCon last week.

“Having the flexibility to raise capital when needed is very important. Whether it’s necessary or not depends on what… the box office is this year.

“According to the Compensation Committee, management has successfully implemented key initiatives to reduce and control costs, raise additional capital, restructure a significant portion of the company’s debt, renegotiate agreements with studios and landlords, secure theaters to operation, promote increased attendance and lay the foundations to seek opportunities to diversify the business,” the filing said.

Aron said in December that he would freeze his compensation for 2023 given the decline 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. The payment for 2022 had not yet been disclosed, so the level of the freeze was not clear.

Aron said he also said at the time he asked 15 to 20 AMC executives not to raise their cash salaries for 2023. I thank them very much for that. AMC has a very dedicated management team.”