AMC CEO Defends Selling Shares On Tuesday, the CEO sold 625,000 shares.

By Emily Rella

Opinions expressed by Entrepreneur contributors are their own.

Bloomberg | Getty Images

AMC CEO Adam Aron has defended himself after selling about $25 million of his shares and sending the share price tumbling down.

He tweeted Wednesday, "62.5% of my annual pay is AMC stock, not cash. I hadn't sold even 1 AMC share in 6 years. I publicly said months ago and again Monday, now at age 67, it's prudent to diversify assets for estate planning. I STILL HAVE WELL OVER 2 MILLION OWNED/GRANTED AMC SHARES. I believe in AMC."

On Tuesday, the CEO sold 625,000 shares, according to a Securities and Exchange Commission filing made public Wednesday.

Their average price was $40.53 per share. Another Tuesday filing to the SEC revealed that Aron plans to sell up to 1.25 million shares of AMC stock soon.

AMC's stock price went down over 4% in after-hours trading after the filings were made known Wednesday.

In an August earnings call, Aron did mention his plans to sell. The most recent earnings call took place Monday and he reiterated his plans, saying that he "should diversify [his] assets a bit, especially with Congress having been discussing imposing potentially soaring capital gains tax rates and significant changes to what can be passed on to one's heirs."

He mentioned on the call that he shared his plans in August not because he was required to, but because he wanted to be transparent.

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Buying / Investing in Business

Former Zillow Execs Target $1.3T Market

Co-ownership is creating big opportunities for entrepreneurs.

Business News

MrBeast's Holding Company Could Be Worth $5 Billion After Its Latest Fundraising Round

The YouTube creator is reportedly in talks to raise funds for a holding company for his various businesses, including his snack brand, Lunchly.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business Culture

How to Build a Company Culture That Values Individuality and Belonging

When employees feel comfortable bringing their whole selves to work, they're more engaged, creative and connected.

Branding

How Businesses Can Capitalize on Emerging Domain Name Trends

The potential of new gTLDs and emerging domain trends is reshaping how businesses brand themselves online. Here's how you can stay ahead of the curve.

Management

5 Time Management Challenges for Executives — and How to Solve Them

Effective time management helps executives focus on high-impact tasks, avoid burnout and lead with clarity.