More than 70% of embattled cinema giant Cineworld’s shareholders have voted in favor of an incentivized bonus scheme worth up to $284M that drew fire last week for being “excessive” in the current climate.
As part of the scheme, CEO Mooky Greidinger and his brother Israel, deputy CEO, could receive up to $89M of that pot. That will be dependent on targets being hit, however, including shares rising significantly in the next three years. If the price recovers to 190p per share, the level they were at pre-pandemic, Greidinger would receive $45M, and the price would need to reach 380p to unlock the full amount. Shares were trading at 67.5p at the time of publication.
Dissent towards the bonuses was sown last week when two proxy advisors for Cineworld’s shareholders Glass Lewis and ISS described the proposal as “excessive” and questioned the amount the Greidinger family could receive.
Like most global exhibitors, Cineworld has been hit hard by the pandemic closures and shifting film slate. The company closed its venues in the UK and U.S., where it operates the Regal chain, back in October. More than 5,000 staff have been furloughed in the UK since then.
The company has been through several fund raises to keep afloat, including securing a new $450M debt facility in November.
Responding to today’s news, chair Alicja Kornasiewicz said, “We acknowledge that there were a significant number of votes cast against the plan and the board will continue to engage with shareholders on remuneration matters in the coming months in light of the feedback received during our consultation.”