Struggling AMC is giving its CEO a $3.75 million bonus, and paying $8.3 million bonuses in total, for 'extraordinary efforts' during the pandemic
Struggling movie theater chain AMC is paying its CEO Adam Aron a $3.75 million bonus, it wrote in a filing Friday.
Other top AMC execs are entitled to bonuses of between $173,000 and $507,000, it said.
The bonuses were approved to recognize "the extraordinary efforts of employees" during the pandemic.
AMC has approved millions in bonuses to its top executives and eligible employees as a means to preserve stockholder value during the COVID-19 pandemic, the theater operator said.
In a regulatory filing on Friday, the company said CEO Adam Aron would receive $3.75 million as bonus, while four other top executives are entitled to bonuses of between $173,000 and $507,000.
The company approved $8.3 million in bonuses in total, including some to corporate associates and theater management.
The bonuses were approved to recognize "the extraordinary efforts of employees to maintain the company's business and preserve stockholder value during the COVID-19 pandemic, encourage continued engagement and retention, and incentivize our management and employees during the continuing and unprecedented difficult business conditions," AMC said in the filing.
The move comes at a time when cinema chains like AMC have taken a blow due to coronavirus-led restrictions that caused delays in film releases. The number of visitors to cinemas owned by AMC, the world's largest theater chain, fell 90% year-on-year in the quarter to September, and its revenue plummeted to match.
Recent spikes in COVID-19 cases, alongside delays to major releases or decisions to launch straight to streaming, "have had, and are expected to continue to have in the future, a material adverse impact on theatre attendance levels and our business," AMC wrote in an SEC filing in December.
The company staved off bankruptcy through a debt restructuring deal last year after saying in December that it could run out of money by the end of January.
Shares of the Leawood, Kansas-based company were also one of the "stinks" whose wild ride captivated investors several weeks ago and during which its share price surged more than 860% compared with the beginning of the year, at its highest.
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