Last week we reported upon the widely criticised plans for Cineworld PLC to give out share-based awards over the next 3 years totaling over £208m ($283m).
Cinework is billions in debt
For a company that is struggling with a debt pile in the billions, and creating a significant number of redundancies for staff across the UK over the past few months, the move isn’t popular. It was met with outcry from outlets, such as, The Guardian who decreed its plans to hope it will “flop”.
Not to mention advisory industry boards noting the pay-outs were highly excessive and unneeded in the climate. Journalists from across the media noted shareholders were furious and expected to revolt against the plans. And they did it.
Over a 1/3 voted against it
Over a third of shareholders today voted against the measures. These measures can result in giving Mooky Gredinger, the chief executive along with his brother, Israel, pay-outs of over £65m each.
Unfortunately, 30% wasn’t enough to stop the motion being passed as the Gredinger family account for 20% of Cineworld share, and only a 50% vote was needed. The motion will allow a 3-year incentive that rewards the company’s senior executive team, if Cineworld’s share price bounces back, to 190p within three years.
Pre COVID the company was reaching around 197p. So it’s highly likely, given the string of blockbusters due to release when the situation changes. If this target is met, bosses will share over £104m.
If the share price reaches even higher end of 380p, executive directors would between them be awarded shares worth a total of £208m. Alicja Kornasiewicz, chair of Cineworld, said: “We are pleased that the plan has been supported by a wide range of our shareholders. We carried out an extensive consultation with shareholders before proposing the plan and made amendments to reflect their feedback.”
Currently, shares are trading at 64p with Cineworld shuttering all 127 sites across the UK and Ireland last October when No Time To Die was delayed.
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