AMC (AMC) CEO Adam Aron said he would cut his compensation after the cinema operator posted its latest quarterly results amid a dwindling stock price.
“2023 was clearly another year of recovery and improved performance for AMC. But it was not a good year for our shareholders,” Aron said during the company’s earnings call with analysts on Wednesday.
AMC stock sank about 11% on Thursday, hovering around $4.50 per share. The stock is down more than 90% over the past year as the company has been issuing shares to pay down its debt, which dilutes investors.
Aron highlighted he hasn’t sold any of his equity in more than two years, and as the largest retail shareholder of AMC, he has lost “tens of millions” in the value of his holdings.
“In my stock losses, I share in your frustration. I feel your pain, and I’m heavily incentivized to get the value of your AMC shares back on the right track,” he told investors during the company’s earnings call with analysts on Wednesday.
Aron said he asked the board to cut his target compensation “substantially” for the next 12 months.
“Based on the company’s financial results, the board and I agreed that my target compensation will go down right now as we move forward by 25% versus the previous year’s target,” said Aron.
Aron defended the company’s move to sell shares to raise money during the call.
“We did in dilution what was absolutely vital for your company to do to get through the many challenges that have been thrown our way,” he said, leaving the door open for future share sales if needed.
“AMC must continue to address our debt load, extend our debt maturities, currently mostly in 2026, and push them out into later years, and also to ensure that our cash reserves remain robust,” he added. “Cash is king.”
The company posted an adjusted loss per share of $0.54 for the fourth quarter of 2023, with revenue of $1.1 billion versus Wall Street expectations for a loss of $0.66 and sales of $1.05 billion.
Total revenue for 2023 grew 23% to $4.8 billion compared to $3.9 billion in the prior year.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre.
