AMC CEO defends selling hefty chunk of his shares, calls out a Biden policy proposal
CEO Adam Aron gave a heads up on the sale in August and again on Monday
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AMC Entertainment Holdings CEO Adam Aron is defending himself after his sale of roughly $25 million of shares sparked a buzz and sent the share price on a downward slide.
Aron sold 625,000 shares on Tuesday at an average price of $40.53 per share, and the sale was disclosed on the Securities and Exchange Commission's website Wednesday after the closing bell. A separate form filed to the SEC on Tuesday shows Aron disclosed plans to sell up to 1.25 million shares of AMC stock in the near future.
Following the revelation, AMC's stock price dropped more than 4% in after-hours trading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMC | AMC ENTERTAINMENT | 3.28 | -0.01 | -0.31% |
Adam Aron, CEO, AMC Entertainment Holdings, Inc., on September 27, 2016 in Beverly Hills, California. (Photo by Matt Winkelmeyer/Getty Images) (Matt Winkelmeyer/Getty Images / Getty Images)
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Aron tweeted at 4:31 PM ET, "62.5% of my annual pay is AMC stock, not cash. I hadn’t sold even 1 AMC share in 6 years. I publicly said months ago and again Monday, now at age 67, it’s prudent to diversify assets for estate planning. I STILL HAVE WELL OVER 2 MILLION OWNED/GRANTED AMC SHARES. I believe in AMC."
The CEO had, indeed, revealed back in August during an earnings call with investors that he would be selling a chunk of shares and reiterated his plans again on Monday.
"But on our last call, I also pointed out to you that in September of 2021, I would turn 67 years of age, a youthful, vibrant, vigorous full-of-life 67, I might add, but 67 nonetheless," Aron said on the call earlier this week. "Prudent estate planning suggests I should diversify my assets a bit, especially with Congress having been discussing imposing potentially soaring capital gains tax rates and significant changes to what can be passed on to one's heirs."
(AP Photo/LM Otero) (AP Photo/LM Otero)
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"So even though I was not required to make the public disclosures that I made back in August, to be transparent, I made those public announcements anyway," he continued. "Nor am I required to make any public announcement today, although to be transparent, repeating those same public announcements today."