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25 Jan 2021 | 15:03

Cineworld bonus scheme backed but third of shareholders revolt

(Sharecast News) - Cineworld shareholders backed plans on Monday to pay executives up to £208m in bonuses despite the fact that all of its UK sites remain closed due to the impact of the Covid-19 pandemic, with thousands of staff members on furlough. Although resolutions were passed in support of the group's long-term incentive plan, 29.9% of shareholders opposed it.

Under the plan, chief executive Mooky Greidinger and his brother Isreal would receive £33m each in bonuses if the Cineworld share price reaches 190p - close to pre-pandemic levels - within three years. If the share price hits 380p, they would each receive £65m, with executive directors receiving shares worth a total of £208m.

The scheme required 50% shareholder support.

Chair Alicja Kornasiewicz said: "We are pleased that the plan has been supported by a wide range of our shareholders. We carried out an extensive consultation with shareholders before proposing the Plan and made amendments to reflect their feedback. We are grateful for the constructive manner in which they engaged with us and the time that they took to consider the proposal.

"We acknowledge that there were a significant number of votes cast against the plan and the board will continue to engage with shareholders on remuneration matters in the coming months in light of the feedback received during our consultation."

At 1500 GMT, the shares were down 2.5% at 4.46p.

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