(Adds details on votes cast, incentive scheme, background)
Jan 25 (Reuters) - Cineworld said on Monday its investors approved an incentive plan for its top boss and his deputy, while acknowledging “significant number of votes” against the scheme.
Under the plan, Chief Executive Officer Moshe Greidinger and his brother and deputy CEO, Israel Greidinger, will receive shares worth at least 33 million pounds each ($45.15 million) if Cineworld’s stock hits its pre-pandemic level of 190 pence in three years.
The upper cap on the stock award is 380 pence, which translates into as much as 65 million pounds worth of shares each for the two brothers. The top end of the target is also 70 pence above the record high hit by the company’s shares in May 2017.
The world’s second-largest cinema operator said 70.15% of the votes cast had been for approving the incentive scheme, while 69.25% had been cast to approve the new pay policy.
The scheme had faced backlash from advisory groups such as Glass Lewis and ISS which questioned the need for incentives and said that the share price could be affected by several external factors.
“The Board will continue to engage with shareholders on remuneration matters in the coming months in light of the feedback received during our consultation,” Chairwoman Alicja Kornasiewicz said.
The company’s shareholders also approved incentives for Cineworld’s finance boss and its other top executives.
The approval comes against the backdrop of turbulent times for movie theatre chains globally due to the coronavirus pandemic.
In the latest setback to the industry, the global release of James Bond movie “No Time to Die” was delayed to October from April last week.
All of Cineworld’s cinemas in the United States and UK are currently shut, and the company had said in October that as many as 45,000 workers would be left unemployed..
$1 = 0.7308 pounds Reporting by Tanishaa Nadkar in Bengaluru; Editing by Maju Samuel and Anil D’Silva