AMC Entertainment Holdings Inc. (NYSE: AMC) is in the news this morning after its CEO requested that his salary be frozen until 2023 from the board of directors.
AMC shares are now down over 85%
The stock is currently down more than 85% from its year-to-date high, according to Adam Aron, who blamed the request on a persistent sell-off. He stated this in a tweet:
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.
The cinema chain’s plans to raise fresh equity and announce a 1 for 10 reverse stock split, caused AMC shares to drop sharply last week.
Wall Street considers this meme stock to be “underweight” and anticipates an additional 25% decline in it despite it trading at a fraction of its high.
Other top executives to also waive increments
AMC Entertainment also abandoned plans to purchase some theatres from Cineworld Group earlier in December in an attempt to reduce costs even more.
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.
However, Aron reaffirmed that the phrase “no increment” solely refers to the senior executives. Employees of AMC will still receive a raise. The CEO has sold AMC shares worth more than $40 million since November 2021.