The leader of the world’s largest movie theater chain took to social media to share an update on the company for 2023. Here’s what inflation could mean for senior executive compensation in the new year.
What Happened: The CEO of AMC Entertainment Holdings AMC has not shied away from using social media to share updates on the company. CEO Adam Aron has thanked investors on social media and also credited AMC shareholders for helping to save the company from bankruptcy.
On Tuesday, Aron shared an update on AMC pertaining to employee compensation on Twitter. Aron used three separate tweets to share the update. It looks like an AMC shareholder needs to show Aron how to thread tweets to help more people see the message, rather than separate tweets.
“Biggest inflation in 40 years, so in 2023 companies will grant large % salary raises. But I do not 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,” Aron tweeted.
Along with asking for his own salary to be frozen, Aron also told followers and shareholders that he asked for 15 to 20 of the most senior AMC executives to also freeze salaries and not receive an increase in 2023.
“When CEOs ask, execs to their credit usually agree. I sincerely thank them for that. AMC has a very dedicated management team.”
Aron said that no salary increases for AMC executives is “the right thing to do.”
“I have fans and bashers on Twitter, those who agree or disagree with my decisions. 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.”
Related Link: 5 Things You Might Not Know About AMC CEO Adam Aron
Why It’s Important: Aron is one of the largest AMC shareholders and has often times tweeted that he will do what is best for the company and shareholders.
The company recently announced a new round of financing and plans to vote on a potential reverse stock split.
In June, shareholders voted against a proposal for executive compensation from AMC.
Aron had a base salary of $1.25 million in 2021 and received additional compensation via AMC shares and incentive payments. Aron’s total 2021 compensation totaled $18.9 million according to a filing from the company.
The call for salary freezes comes as AMC shares have fallen 74.9% year-to-date in 2022.
AMC Price Action: AMC shares are down 7% to $4.09 on Tuesday versus a 52-week range of $4 to $21.09.
Read Next: AMC Q3 Earnings Highlights: Revenue And EPS Beat, Company Sells 14.9 Million Ape Shares
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