The nation’s largest theater chain, AMC Entertainment, said on Friday that it will award CEO Adam Aron and other executives a “supplemental special cash bonus” in recognition of the troubled people they faced in past pandemic years. Challenges faced by companies on the financial roller coaster.
Company employees and theater administrators will also receive special bonuses, all of which come from an authorized prize pool of US$8.3 million. The documents submitted to the US Securities and Exchange Commission today only require the company to spin off its top five executives.
Allen will receive $3.75 million; Chief Financial Officer Sean Goodman (Sean Goodman), $507,500; Executive Vice President of U.S./Canada Business John McDonald (John McDonald), $1
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The company stated that these bonuses “are designed to recognize employees’ extraordinary efforts to maintain the company’s business and maintain shareholder value during the COVID-19 pandemic, to encourage them to continue to participate and retain, and to inspire in a continuous and unprecedentedly difficult business environment. Our management and employees.”
When the cinema closed in March last year, AMC executives, including Aaron, agreed to reduce cash pay by 15% and reduce other pay within three years, in exchange for vesting only if the price doubles or triples For the stock, Aron said he will lose $1.6 million due to salary cuts. Due to the darkness of the theater, the company eventually had to take about 30,000 people on vacation, and it slowly returned to normal as the theater reopened in parts of the country.
As income dries up, AMC’s distress has always been the most public and painful thing in the entertainment industry, and Aron has to face high debts, landlords and ongoing pandemics. The company renegotiated the lease contract and restructured its debt several times, raising enough cash to make Chapter 11 a rearview mirror.
Successful financing in winter gave it more ways out, and then fell into an unusual moment on Wall Street. At the end of January, retail investors in the Reddit chat room became supporters of AMC stock, an assistant to GameStop, and actively purchased the stock. This triggered a series of events that helped to reduce debt significantly, just as vaccines were launched and infection rates started to fall.
Among other good news from the exhibition, New York City will open its cinemas on March 5th, and some people believe that Los Angeles may not be behind.