Activision Blizzard CEO agrees to chop his pay by half
Following numerous criticisms from firm shareholders, Activision Blizzard head honcho Bobby Kotick has agreed to chop his wage by 50% in a brand new employment settlement that’ll see him stick round till March 31, 2023, at least.
That comes from a current extension settlement (thanks, Wowhead) that additional notes that the CEO voluntarily took the pay discount to align his wage with firm targets. The discount equates to an $875,000 lower, to place a quantity on it. Kotick has additionally agreed to cut back his goal annual bonus by the identical share, which may see a pay discount of $1,750,000 for every fiscal 12 months 2021 and 2022. It’s not all dangerous information for Kotick, although, as he may nonetheless earn an annual bonus to the tune of 200% of his diminished base wage in 2021 and 2022. The submitting claims that the brand new deal higher “displays shareholder suggestions, incorporates market finest practices, and continues to instantly join pay to efficiency”.
Final month, an funding group representing a few of Activision Blizzard’s shareholders criticised a pay package deal that may’ve seen Kotick snag $200 million in bonuses. Only a 12 months prior, the identical group argued in a submitting with the USA Securities and Trade Fee that the corporate “finds a number of methods to unnecessarily enrich its CEO”. The submitting was spurred on by the assumption that Kotick’s proposed compensation on the time wasn’t inline with the corporate’s targets and outcomes.
CtW Funding Group government director Dieter Waizenegger additional raised issues over how a lot Kotick was making as 800 staff had been laid off in 2019, with a few of them incomes “lower than 1/3 of 1% of the CEO’s earnings” at that cut-off date.
Activision Blizzard is presently set to ship its first-quarter outcomes convention on Might 4.
Picture credit score: Picture through Jordan Matter (CC BY SA 2.0)