The financial compensation for Bobby Kotick is under fire again, as the CEO of Activision Blizzard will earn a payment of up to 200 million dollars.
CtW Investment Group claims that Activision’s success in the last year triggered the shareholder incentive clause with creative value of Kotick’s employment contract, Kotaku reports.
CtW is a group of investors who say its mission is to hold companies accountable for “irresponsible and unethical corporate behavior and overpaid executives.”
Thanks in large part to the pandemic and a year of advertising for Call of Duty, Activision enjoyed a record financial year.
Over the past 12 months, its share price has risen from $ 56 per share to $ 92, where it currently stands. In February, it reached over $ 100 per share.
As the shares spent more than 90 days at double the value when the Kotick labor agreement came into force in 2016 – with a share price of $ 32 in March of that year – the creative incentive would have been triggered. for the value of the shareholders.
It is said that this entitles Kotick to all the bonuses he missed in previous years, even if this was due to failure to meet performance targets. According to CtW calculations, it can reach up to $ 200 million.
CtW criticized the payment, wondering whether Kotick should be rewarded for company-wide success, which can be at least partially attributed to circumstances beyond its control.
“While the rise in Activision’s share price is somewhat commendable, as we said last year and we continue to say, this achievement alone does not justify such a substantial remuneration result for the CEO,” said Michael Varner, the group’s executive compensation research director. , in a statement shared by GameSpot.
“There are many factors that can contribute to an increase in the share price of this company, which may not be directly attributed to the management of Robert Kotick. Using video games as one of the few entertainment options available amid the COVID-19 pandemic, for example, has been an advantage for many companies in the gaming industry, regardless of executive talent or strategic decisions. “
The news follows yesterday’s report that Activision Blizzard fired 50 employees, mainly from its live events and e-sports, the publisher citing the impact of the pandemic on these events.
CtW Investment Group previously criticized Activision Blizzard last year for continuing to award “excessive capital awards” to Kotick, despite failing to meet performance targets.
The group even asked shareholders to vote against the Management Say on Pay proposal, which would allow for these rewards.
CtW also launched a shareholder campaign against Electronic Arts, claiming that the publisher had demonstrated an “excessive equity problem” in terms of mass layoffs.