Just after the start of the year, there was a major shareholder revolt over at Cineworld.
Despite being closed for most of the year and no money coming in…
The company controversially proposed, and in the end, succeeded in a £200 million bonus award scheme to senior partners should certain targets be met.
The debt embattled cinema chain, the second largest on the planet which also owns Regal in the US is struggling against mounting debts in the billions and posted a £2 billion loss for last year reopens this week in England.
However further troubles have hit Cineworld as they held their annual shareholders’ meeting this past week on May 12th.
Investment Firms Speak Out On Cineworld
Read more: Cineworld Heading For Shareholder Backlash
Sky News reported first that a huge investment firm in the company, Legal & General were looking to vote against the re-election of members of the remuneration committee including the chair Alicja Kornasiewicz.
This was all seemingly centred around the pay-outs to senior executives along with the bonus scheme.
Further advisory committees to shareholders had also expressed disdain for the plans and that bonus and share awards are completely inappropriate given the pandemic climate, and the huge government support the company has had over the past year.
The Guardian reports that despite this, (largely due to CEO Mooky Greidinger and family’s shareholding power and size) it still all passed but almost 30% of shareholders rebutted the plans.
£1 Million In Pay
Read more: The Rise & Fall Of Cineworld
Further discontent was caused when it was announced that Greidinger and other directors whom had taken pay cuts from April-June last year will be compensated at a later date, costing the company over a million pounds.
If you’d like to read more on the background of Cineworld and its ever-mounting debt pile you can follow our brief below.
What do you think?
Should Cineworld be paying bonuses after the past year?
Let us know in the comments below.
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