Investors in Britain’s largest cinema chain have approved an incentive scheme that could result in bosses being awarded more than £200m in shares.
Cineworld, which closed all of its 127 sites in the UK and Ireland indefinitely in October, held a vote on a new pay policy and long-term incentive plan at a special meeting. The proposed long-term incentive plan will reward the company’s senior executive team if Cineworld’s share price bounces back to 190p within three years. If this level – which is close to its pre-pandemic level of 197p – is reached, bosses will share £104m. If the share price reaches the upper cap of 380p, executive directors would between them be awarded shares worth a total of £208m.
The schemes, which required 50% voter approval to be implemented, were never in any real doubt of being passed as the Greidinger family control 20% of Cineworld. If the scheme hits its top target then the chief executive, Mooky Greidinger, and his brother and deputy, Israel, will receive awards worth £33m each.
Cineworld’s 5,500 UK staff have been out of work and furloughed since October, when the company closed all its sites indefinitely. There has been a significant round of voluntary and compulsory redundancies since then.