Sometimes, it is simply impressive how an executive can twist words to make things appear to be a positive. The latest to do so is Adam Aron, CEO of AMC Entertainment (NYSE: AMC), whom is evidently looking to save some tax dollars.
Aron this morning announced that he wants to “step up and personally give back” following the embrace he has seen from retail investors that supported his equity through the pandemic. What is he doing to support that? Why, he is unloading some of his shares.
The CEO intends to dump up to $1.0 million of his common shares, which equates to roughly 52,798 shares as of yesterdays market close. The shares are being donated in the name of charity, although he doesn’t have any particular charity in mind. The shares are to be “spread over a number of well respected charities.”
As of the latest filing, Aron currently holds 205,086 shares in AMC Entertainment. This effectively means that he is looking to unload roughly a quarter of his position to donate it to charity.
While some will view this as coming from the goodness of his heart, others see it more simply for what it really is: a means of generating a tax writeoff. And investors aren’t exactly happy about it.
However, Aron didn’t stop there. His tweet was followed by a second this morning, wherein he asked for opinions from his shareholders on where the shares should be donated to. That too, didn’t necessarily go as planned.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
The Economy That Cried Wolf (Of Wall Street)
(title card concept stolen from Martin Scorsese and Jesse Hawken) This past March, when the...