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.

Editor's Pick

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Innovation

4 Ways Market Leaders Use Innovation to Foster Business Growth

Forward-thinkers constantly strive to diversify and streamline their products and services, turning novelties into commodities desired by many.

Business News

Your Old Apple AirPods Can Soon Act as an Over-the-Counter Hearing Aid, According to the FDA

The new software is compatible with the Apple AirPods Pro and accessible through iOS — for free and now FDA-authorized.

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 News

'More Soul-Crushing Than Ever': Popular Hiring Platform Finds Around 20% of Its Postings Were 'Ghost Jobs'

Is that job listing too good to be true? There's a one-in-five chance that it might be.

Growing a Business

5 Risk-Taking Lessons From Founders Who Bet Big and Won

Discover the bold moves and strategic risks that catapulted these entrepreneurs to success. Learn how their fearless decisions can inspire your own path to growth.