Financial compensation for Bobby Kotick is on fire again, as Activision Blizzard CEO will get a payment of up to $ 200 million.
CtW Investment Group claims Activision’s success over the past year has triggered the creative value incentive clause for the shareholder in the Kotick labor deal, Kotaku reports.
CtW is a group of investors who say their mission is to hold companies accountable for “irresponsible and unethical corporate behavior and excessive executive pay.”
Due, in large part, to the pandemic, and the highlight of Call of Duty, Activision enjoyed a record economic year.
Over the past twelve months, its share price has risen from $ 56 per share to $ 92, where it currently stands. In February, it reached more than $ 100 per share.
Since the shares have spent more than 90 days at twice the value it had when Kotick’s labor agreement came into force in 2016 (with a share price of $ 32 in March of that year), ‘reported, the creative value incentive for the shareholder was activated.
It is said that this will entitle Kotick to all bonuses he lost in previous years, even if this was due to non-compliance with performance targets. According to CtW estimates, this could reach $ 200 million.
CtW has criticized the payment, questioning whether Kotick should be rewarded for the success of the entire company which can at least be attributed in part to circumstances beyond its control.
“While the increase in the price of Activision shares is somewhat commendable, as we stated last year and continues to assert, this achievement alone does not justify such a substantial salary 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 a rise in the share price of this particular company that may not be directly attributed to Robert Kotick’s leadership. The use of video games as one of the few entertainment options available in the midst of the COVID-19 pandemic, for example, it has been a benefit to many companies in the gaming industry, regardless of executive talent or strategic decisions. “
The news follows yesterday’s report that Activision Blizzard had laid off 50 employees, mostly from its live events and sports business, with the publisher citing the impact of the pandemic on those events.
CtW Investment Group previously criticized Activision Blizzard last year for continuing to grant Kotick “excessive capital awards” despite failing to meet performance-related targets.
The group even urged shareholders to vote against Management’s proposal on Management’s Payment, which would allow for these rewards.
CtW also launched a shareholder campaign against Electronic Arts, claiming the publisher had demonstrated an “excessive problem of granting equity” in the form of mass layoffs.