After a positive opening to the week for the Cineworld share price (LON:CINE), it dropped by 4.11% on Tuesday, down to 92.34p. It has lost a lot of ground from its highest point of the year of 122p, its level on 19 March. Since the turn of the year the Cineworld share price is up by 44% despite today’s retreat. This comes as the chain is reopening its cinemas in both the US and the UK in April and May respectively.
Cineworld Clashing with Major Investor
Ahead of its AGM on May 12, Cineworld is coming to blows with one of its major shareholders, Legal & General Investment Management (LGIM), as the firm announced its intention to vote against the re-election of the cinema chain’s incumbent chairman, in addition to its renumeration committee.
LGIM said in a statement that it has “strong concerns about the structure of the long-term incentive plan granted to the executives, and its misalignment with the long-term interests of the company, its shareholders and other stakeholders”.
“In particular, we note the impact of COVID-19 on the company’s financials and stakeholders, including furloughs for employees and the suspension of dividends. We also take into account the current social sensitivities around income inequality”, LGIM said.
The timing is not ideal for Cineworld as it looks to reopen its locations across the UK on May 17 in line with the government’s roadmap out of lockdown.