AMC Networks Inc. has entered into a new employment agreement with Dan McDermott to continue serving as Chief Content Officer and President of AMC Studios, formalizing his role through December 31, 2028. The contract was executed on November 18, 2025 and took effect the same day.
The agreement comes shortly after AMC released its third-quarter results, which highlighted rising revenue but ongoing profitability challenges, placing the company at a delicate moment as it balances leadership continuity with financial pressures.
Under the new contract, McDermott will earn a minimum annual base salary of $1,625,000, retroactive to July 1, 2025. His annual target bonus is set at no less than 130 percent of actual salary dollars paid during the year, a structure made retroactive to January 1, 2025. The agreement ensures his continued participation in the long-term equity and incentive programs offered to similarly situated executives, subject to his ongoing employment.
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During each award cycle through 2028, McDermott is expected to receive annual grants of cash and equity valued at a minimum aggregate amount of $1,600,000, with the awards evenly split between cash and equity. For the 2025 cycle, he has already received additional long-term incentive grants totaling $600,000, made up of a $300,000 cash performance award and $300,000 in restricted stock units. These will vest under the same schedule as previously approved 2025 awards. McDermott will also continue to be eligible for standard company benefit programs, consistent with plan requirements.
The agreement outlines severance protections if his employment ends before the expiration date. If AMC terminates his employment without cause, or if he resigns for good reason and cause does not exist, he will receive severance benefits upon signing a release of claims. These benefits include a cash payment of not less than two times the sum of his annual salary and annual target bonus, a prorated bonus for the year of termination, any unpaid prior-year bonus, immediate vesting of his long-term cash incentive awards, the removal of time-based restrictions on restricted stock or restricted stock units, and continued vesting of stock options and stock appreciation awards according to their original schedules. If his employment ends before the expiration date due to death or disability, his estate or beneficiary will receive the prorated bonus and immediate vesting of all equity and cash-based awards. For awards tied to performance criteria, payouts will be made at target if the measurement period is incomplete, or in line with similarly situated executives if the performance period has already concluded.
The contract also includes an exclusivity covenant preventing McDermott from providing services to competitive entities through the contract’s expiration date, except in situations where he departs the company under qualifying circumstances.
The employment announcement follows the release of AMC’s third-quarter results, posted on its investor website. The company’s quarterly earnings per share came in ahead of market expectations, providing a notable upside surprise. Revenue for the quarter reached $1.30 billion, surpassing analyst forecasts and reflecting strong admissions activity and robust food and beverage sales, according to comments from CEO Adam Aron.
Despite the revenue momentum, AMC faces challenges in profitability and cash flow. The company reported a net income loss of $298 million for the period, while operating cash flow remained negative at $14.9 million. Profitability ratios illustrate the pressure: the EBIT margin stands at negative 2.9 percent, indicating that operating income remains below breakeven.
By contrast, the company’s gross margin exceeds 80 percent, showing that direct production costs remain relatively controlled, even as broader expenses weigh on overall results. These figures capture a company experiencing both operational strengths and financial headwinds, positioning the leadership stability provided by the McDermott agreement as a meaningful strategic step.
Company Profile
AMC Networks Inc. is a media and entertainment company headquartered in New York. Operating within the cable television, streaming, and content production industries, the company distributes original series, films, and programming across its network brands and digital platforms. It generates revenue through subscription fees, advertising sales, content licensing, and studio production activities.
AMC Networks became a publicly traded company in 2011 following its separation from Cablevision.
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