What Happened: The company said the bonuses recognized the “extraordinary efforts of employees” during the COVID-19 pandemic.
Aron will receive $3.75 million, in part for his work to “encourage continued engagement and retention, and incentivize our management and employees during the continuing and unprecedented difficult business conditions.”
Executives other than Aron are in line to receive bonuses in the range of $173,000 to $507,000.
Why It Matters: It’s no secret cinema chains have been among the hardest hit businesses in the pandemic, with theaters closed completely or at significantly reduced capacity over the past 12 months.
Movie theaters now face multi-pronged setbacks: Lockdown measures have forced movie-goers to stay home and try out alternatives, as movie studios experiment by releasing movies directly on streaming platforms.
AMC has staved off bankruptcy for the time being, but it’s safe to say many shareholders will be left wondering if now is the time to dish out bonuses to leadership in a still massively disrupted industry.
Fresh Scenes Ahead: There could, however, be light at the end of the tunnel for AMC and its peers. On Monday, shares of AMC were trading higher after the company announced it will reopen its 13 theaters in New York City on March 5.
The rally came after Governor Andrew Cuomo announced theaters across New York state are permitted to re-open.
“Since reopening our first theaters with AMC Safe & Clean in August, AMC has welcomed back nearly 10 million moviegoers nationwide without a single reported case of COVID-19 transmission among moviegoers at our theaters,” CEO and President Adam Aron said in a press release.
See Also: How To Buy AMC Stock.
Photo by camknows on Flickr.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.