Activision Blizzard CEO Bobby Kotick reduces wage by 50% to $875K


Activision Blizzard CEO Bobby Kotick has agreed to decrease each his base wage and goal annual bonus by 50 %.

In response to filings shared by the corporate this week, Kotick’s base wage will likely be diminished from $1.75 million to $875,000 for each fiscal 2021 and 2022. His yearly bonuses cap out at 200 % of his wage, so relying on if sure targets are met these diminished bonuses may add as much as $1.75 million to his yearly pay.

That submitting notes that the discount brings Kotick’s compensation extra in keeping with different CEOs within the recreation business, and likewise barely closes the numerous hole between his pay and the typical pay of a developer at Activision Blizzard.

Again in 2019, {that a} CEO pay report named Kotick (alongside EA CEO Andrew Wilson) as one of many 100 “most overpaid CEOs,” due partially to the truth that Kotick earned, on the time, 301 % greater than the median Activision Blizzard workers member.

Kotick has taken pay cuts since then, notably trimming 15 % off his base wage in 2020 as famous within the submitting. Nonetheless, the 2021 version of that report now names Kotick because the sixteenth most overpaid CEO regardless of that change. Primarily based on its information, Kotick revamped $30 million in 2020, greater than 319 % the median Activision Blizzard worker, with 28 % of the board voting in opposition to his compensation package deal.

Some shareholders in Activision Blizzard have been rallying for Kotick to cut back his pay for years, together with a 2020 submitting (by way of Kotaku) the place one funding group questioned why Kotick was given “a number of bites on the apple” by way of base pay, bonuses, and thousands and thousands in inventory choices. (Kotick has, for a number of years, obtained over $20 million in inventory choices per yr.)

His reign at Activision Blizzard has additionally overlapped with a number of vital rounds of layoffs over the previous a number of years, layoffs that got here amid quarters of typically report monetary success for the corporate as an entire.

Whereas Kotick’s latest 50 % wage discount is described as one thing the CEO is doing voluntarily, the SEC submitting notes that the choice is in no small half pushed by suggestions from the board of administrators and main traders within the firm that want to guarantee Kotick’s pay “displays shareholder suggestions, incorporates market greatest practices, and continues to instantly join pay to efficiency.”

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