Shareholder Revolt Can’t Stop Cineworld’s £209m Payout

UK cinemas cineworld picturehouse covid 19

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

cineworld

Credit: Cineworld

Read more: Cineworld To Close All Its 128 UK Sites After No Time To Die’s Delay

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

cineworld cinemas closure covid 19

Credit: Cineworld

Read more: Henry Cavill Offers The Perfect Response To Criticism Of His Performance In The Witcher

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.

£104m bonus

no time to die cineworld closure uk

Credit: Universal Pictures

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.

What do you make of this news? Let us know your thoughts in the comments below.

What do you make of this story? Let us know in the comments below or on our Facebook, Twitter or Instagram pages! And if you enjoy listening to film podcasts, why not check out our podcasts, Small Screen Stories and Small Screen Film Club wherever you get your podcasts!



There are no comments

Add yours

Have your say...

9 Shares
Share9
Tweet
Reddit
Email