AMC Theatres shareholders have once again voted against the proposed compensation packages for its executive officers, including CEO Adam Aron. This decision came as a symbolically significant move, with 20,442,308 shares voting against the pay package, while 19,565,042 shares voted for it. Aron’s compensation in 2022 amounted to $23.7 million, marking a 25 percent increase from his 2021 earnings of $18.9 million.
In addition to Aron’s compensation, CFO Sean Goodman received $6.27 million in overall compensation in 2022, an increase from the $4.7 million he received in the previous year. This marks the second consecutive year in which shareholders have voted against the compensation packages for the company’s top executives. In 2021, 86,896,550 shares voted against the compensation, while 52,148,743 shares voted in favor.
While these votes are non-binding and do not have direct financial implications, they may reflect investor dissatisfaction with the compensation packages or with management. AMC Theatres gained attention in 2021 as a meme stock, leading to a surge in its share prices due to interest from retail investors.
Despite the shareholder discontent, AMC Theatres has been actively using its resources to expand its operations. The company has made notable investments in acquiring former Pacific and ArcLight theaters, as well as theater locations from Bow Tie Cinemas. In addition, AMC initiated a retail popcorn business and acquired a $27.9 million stake in gold and silver mining company Hycroft Mining.
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The company’s recent earnings report for the three months ended in September showed a positive turn as AMC swung to profit and experienced an increase in revenue, attributed to the success of films such as “Barbie” and “Oppenheimer.” Furthermore, AMC’s recent success with the rollout of “The Taylor Swift: The Eras Tour” demonstrated its ability to attract audiences. However, CEO Adam Aron has also cautioned that theaters are likely to face repercussions from the ongoing strikes by writers and actors, which have disrupted the film release calendar.
Overall, AMC Theatres’ shareholders’ decision to vote against the proposed compensation packages highlights a potential disconnect between investor expectations and the company’s executive compensation practices. The challenges faced by the company have prompted a reevaluation of its strategic direction and management decisions. As AMC continues to navigate the evolving landscape of the entertainment industry, it will be crucial for the company to address investor concerns and demonstrate its ability to generate sustainable value for its shareholders.
