Mooky movie

22 January 2021 By Christopher Thompson Follow @CGAThompson

The $1.3 bln movie chain wants to give executives including CEO Mooky Greidinger shares which would be worth $142 mln if they recover to pre-Covid-19 levels. It’s a skewed reward for a company which owes its survival to creditors and governments. Only investors can stop it.

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Cineworld is facing a revolt over executive pay after the pandemic-hit global theatre chain proposed a bonus scheme which could see its chief executive awarded shares with a value of up to 65 million pounds.

The company has called a general meeting on Jan. 25 to approve proposals which would put Cineworld’s chief executive and deputy chief executive — the brothers Mooky and Israel Greidinger — in line to each receive stock-based awards of up to 1.25% of the company’s issued shares if the company hits certain targets. In total, the scheme can award shares equivalent to 4% of the company’s share capital.

Executives would be entitled to a quarter of the award if Cineworld’s share price reaches 130 pence after a period of at least three years, rising to a full payout if the share price rises above 190 pence. The value of the scheme is capped so that if Cineworld’s share price rises above 380 pence per share the number of shares awarded will be reduced.

Cineworld shares were down 4% at 66.3 pence by 0935 GMT on Jan. 22.

Three top 30 shareholders said they would vote against the proposed pay package, the Financial Times reported on Jan. 21. Proxy advisers including Institutional Shareholder Services have recommended investors oppose the bonus scheme.

Separately, the global release of the James Bond movie "No Time to Die" was postponed to October from April, its producers said on Jan. 21. The delay represents another setback for movie theaters trying to rebuild a business crushed by Covid-19.

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Cineworld shares were down 4% at 66.3 pence by 0935 GMT on Jan. 22.

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