Cineworld bosses could get up to £208M in bonuses despite receiving taxpayer support

Cineworld bosses could get up to £208 MILLION in bonuses after shareholders approved ‘excessive’ payout scheme – despite firm receiving taxpayer support during lockdown

  • Chief executive alone could receive up to £65million of the bonus money  
  • Cinema company received taxpayer support through furlough during pandemic
  • Bosses secured an extra £560million in November from independent lenders 

Cineworld bosses could get up to £208million in bonuses after persuading enough shareholders to agree to the ‘excessive’ payout scheme despite receiving taxpayer support throughout lockdown.

Its chief executive could receive £65million alone after investors holding just over 70 per cent of shares voted for the new long-term incentive plan.

The cinema company received taxpayer support through furlough and tapping up shareholders for cash to avoid collapse during the pandemic.

Cineworld bosses could get up to £208million in bonuses after persuading enough shareholders to agree to the ‘excessive’ payout scheme despite receiving taxpayer support throughout lockdown

Bosses secured an extra £560million in November which they said was needed to weather the coronavirus pandemic. 

More than 5,000 staff have been furloughed while its 127 UK cinemas, including its Picturehouse brand, are shut. 

The HMRC is unable to reveal the amount of money the Government gave Cineworld until February.   

Alicja Kornasiewicz, chair of the cinema chain, said: ‘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.’

The company, which is the world’s second-largest cinema operator, had expected a backlash although in the end 69.25 per cent and 70.15 per cent voted in favour of the remuneration and long-term incentive plans respectively.

Its chief executive could receive £65million alone after investors holding just over 70 per cent of shares voted for the new long-term incentive plan

Its chief executive could receive £65million alone after investors holding just over 70 per cent of shares voted for the new long-term incentive plan

Prior to the vote, proxy advisers for shareholders Glass Lewis and ISS had described the plans for the bonus as ‘excessive’.

They also questioned whether the chief executive, Mooky Greidinger, required further incentives considering his family already have a 20 per cent stake in the business.

To get a £33million payout Cineworld’s share price must hit 190p within three years – back to levels it was at prior to the pandemic. 

To unlock £65million it must hit 380p. Shares were down 3.18 per cent at 64p by Monday lunchtime. 

Bosses have also faced up to big name blockbusters being delayed or being moved straight to streaming services – risking the chances of a swift recovery.

Last week producers revealed that the latest James Bond film is being postponed a second time – from April to October.

In November bosses secured a £336million debt lifeline to help guide the troubled cinema chain through the coronavirus pandemic.

The group, which has also been forced to close its US sites, said at the time it had also secured access to another £233million in liquidity to boost its finances.

At the time it also extended an £83million revolving credit facility, which was due to expire next month, to May 2024, and pulled forward an expected tax refund of more than £150million to early 2021.