AMC Entertainment is awarding CEO Adam Aron, among other executives, a special cash bonus to recognize their “extraordinary efforts” during the COVID-19 pandemic.
The total authorized amount of bonuses being paid to employees including its “NEOs, corporate associates and theatre management” is approximately $8.3 million, according to AMC. Aron received a bonus of $3.75 million, while chief financial officer Sean Goodman received $507,500. John McDonald, EVP of US/Canada operations, received $194,550. Elizabeth Frank, VP of worldwide programming and chief content officer, received $180,650. And Stephen Colanero, EVP and CMO, received $173,875.
The bonuses are “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,” the company said.
Just like other theater chains, the pandemic hit AMC hard. In March of last year, more than 26,000 theater employees were furloughed, including Aron, who worked without pay. He received a $1.25 million bonus in November, and in 2017, he received a compensation package of $9.67 million, including his base salary of $1.25 million and $6.48 million in stock awards, as well as $1.92 million in non-equity incentive plan compensation.
In its Q3 earnings report, AMC said its revenue for the quarter ending in September declined by 91% to $119 million due to the coronavirus pandemic. The company, owned by Chinese conglomerate Dalian Wanda Group, reported a loss of $905.8 million, compared with the company’s $54.8 million loss during the same period of time the year prior.
AMC even found itself in debt — the company had previously warned it will be out of cash by early 2021 — but has since said it raised enough capital to remain operational “through this dark coronavirus-impacted winter.” Recently, Aron negotiated a deal with Universal to allow the studio to release its films earlier than ever for premium on-demand.