AMC Entertainment Holdings Inc (NYSE: AMC) is in focus this morning after its top boss asked the Board of Directors to freeze his salary for 2023.
AMC shares are now down over 85%
Adam Aron attributed the request to a continued to sell-off that now has the stock down more than 85% versus its year-to-date high. In a tweet, he wrote:
I don’t 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.
AMC shares were hit particularly hard last week after the cinema chain revealed plans of raising new equity and a 1 for 10 reverse stock split as Invezz reported here.
Despite it trading at a fraction of its high, Wall Street rates this meme stock at “underweight” and sees another 25% downside in it on average.
Other top executives to also waive increments
Earlier in December, AMC Entertainment also gave up plans of buying some theatres from Cineworld Group to further minimise costs.
According to the Chief Executive, other top executives at the company have agreed to forgo increments in 2023.
No increase for those at the top is the right thing to do. I have fans and bashers on Twitter. But know this: my motives are pure. I try as best as I know how to lead AMC through the painful aftermath of this horrid pandemic.
Aron, however, confirmed that the said “no increment” applies only to the top executives. AMC’s employees will still get a raise. Since November 2021, the CEO has sold over $40 million worth of AMC shares.
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