AMC board names CEO Adam Aron as chairman By Reuters

0
64
2/2

© Reuters. FILE PHOTO: An AMC theatre is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., January 27, 2021. REUTERS/Carlo Allegri/File Photo

2/2

(Reuters) – Theater operator AMC Entertainment (NYSE:) Holdings Inc on Wednesday named Chief Executive Officer Adam Aron as chairman, at a time when investors are pushing companies to separate the two roles to keep a check on management.

Aron has served as CEO, president and member of AMC’s board since 2016, having led the company to become the largest cinema operator in the world and maintain its liquidity when the pandemic hammered its business.

One of so-called ‘meme stocks’, AMC soared in a Reddit-driven retail short squeeze in the beginning of the year. The company’s shares were down 2.8% in premarket trading on Wednesday.

Last month, Microsoft (NASDAQ:) made a similar move, naming CEO Satya Nadella as chairman of its board.

Many large firms have a legacy structure where the CEO and chairperson roles are held by a single person, usually the founder, but only in rare instances do corporations choose to go back to such a structure.

According to data from shareholder advisory firm Institutional Shareholder Services Inc (ISS) ESG, 59% of S&P companies have a separate chairman and CEO as of 2021, compared with 37% just ten years ago.

AMC said Ambassador Philip Lader will serve as lead director of the company.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.