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.
