AMC (AMC) CEO Adam Aron mentioned he would lower his compensation after the cinema operator posted its newest quarterly outcomes amid a dwindling inventory worth.
“2023 was clearly one other yr of restoration and improved efficiency for AMC. But it surely was not a very good yr for our shareholders,” Aron mentioned in the course of the firm’s earnings name with analysts on Wednesday.
AMC inventory sank about 11% on Thursday, hovering round $4.50 every. The inventory is down greater than 90% over the previous yr as the corporate has been issuing shares to pay down its debt, which dilutes traders.
Aron highlighted he hasn’t bought any of his shares in additional than two years, and because the largest retail shareholder of AMC, he has misplaced “tens of tens of millions” within the worth of his holdings.
“In my inventory losses, I share in your frustration. I really feel your ache, and I am closely incentivized to get the worth of your AMC shares again heading in the right direction,” he informed traders in the course of the firm’s earnings name with analysts on Wednesday.
Aron mentioned he requested the board to chop his goal compensation “considerably” for the subsequent 12 months.
“Based mostly on the corporate’s monetary outcomes, the board and I agreed that my goal compensation will go down proper now as we transfer ahead by 25% versus the earlier yr’s goal,” mentioned Aron.
Aron defended the corporate’s transfer to promote shares to lift cash in the course of the name.
“We did in dilution what was completely very important in your firm to do to get by way of the numerous challenges which were thrown our manner,” he mentioned, leaving the door open for future share gross sales if wanted.
“AMC should proceed to deal with our debt load, prolong our debt maturities, presently principally in 2026, and push them out into later years, and likewise to make sure that our money reserves stay sturdy,” he added. “Money is king.”
The corporate posted an adjusted loss per share of $0.54 for the fourth quarter of 2023, with income of $1.1 billion versus Wall Avenue expectations for a lack of $0.66 and gross sales of $1.05 billion.
Complete income for 2023 grew 23% to $4.8 billion in comparison with $3.9 billion within the prior yr.
Ines Ferre is a senior enterprise reporter for Yahoo Finance. Observe her on Twitter at @ines_ferre.
