AMC Entertainment Holdings Inc. shareholders rejected the company’s proposed executive pay plan at its annual meeting Thursday, a rare rebuke of a management team that collected tens of millions of dollars last year.The vote was advisory, meaning the company isn’t obligated to change its executive remuneration plans.
Two of the most prominent proxy advisers, Institutional Shareholder Services and Glass Lewis, recommended investors vote against the pay plan this year. Both companies said in their reports that executive compensation at the last annual meeting was only weakly supported, with about two-thirds of shareholders voting in favor of the proposal. Analysts at both firms said AMC should have transparently and thoroughly addressed investor concerns, but didn’t.
ISS took its recommendations a step further and said shareholders should withhold a vote in support for Aron, an executive known for his unusual management style….
Aron’s total compensation fell nearly 10% to $18.9 million last year, according to a filing from AMC. While his base salary increased, his 2020 compensation was driven by one-time $5 million bonus in the first year of the Covid-19 pandemic for fighting a looming bankruptcy. At the same time, AMC’s stock has plummeted, falling nearly 57% this year through Thursday’s close.The theater chain has faced challenges to its main business as consumers remain skittish to return to cinemas during the pandemic and movie studios make their films available for home viewing much sooner than they have in the past.AMC Holders Rejection of CEO Adam Aron’s $19 Million Pay – Bloomberg