Financial compensation for Bobby Kotick is under fire once again as Activision Blizzard’s CEO will earn a payout of up to $ 200 million.
The CtW Investment Group alleges that Activision’s success over the past year has led to the Shareholder Value Creative Incentive clause of Kotick’s employment contract, Kotaku reports.
CtW is an investor group that states that its mission is to hold companies accountable for “irresponsible and unethical corporate behavior and excessive remuneration of directors”.
Thanks in large part to the pandemic, and a big year for Call of Duty, Activision had a record year.
Over the course of the past 12 months, the stock price has risen from $ 56 a share to $ 92 where it currently stands. In February, it hit more than $ 100 a share.
Given that the stock has stood for more than 90 days at double the value it was when Kotick’s employment contract went into effect in 2016 – with a share price of $ 32 in March of that year – the Shareholder Value Creative Incentive has gone to reportedly activated.
This would entitle Kotick to any bonuses he missed in previous years, even if it was due to failure to meet performance targets. According to CtW’s calculations, this could amount to $ 200 million.
CtW has criticized the payout and questions whether Kotick should be rewarded for company-wide success that can be attributed at least in part to circumstances beyond its control.
“While the rise in Activision’s stock price is somewhat commendable, as we stated and continue to claim last year, this performance alone does not justify such a substantial wage result for the CEO,” said Michael Varner, director of executive compensation research. 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 attributable to Robert Kotick’s leadership. The use of video games as one of the few entertainment options available during the COVID-19 pandemic, for example, has been a boon to many companies in the gaming industry, regardless of leadership talent or strategic decisions. ”
The news follows yesterday’s report that Activision Blizzard had laid off 50 employees mainly due to its live events and esports activities, with the publisher citing the impact of the pandemic on such events.
CtW Investment Group previously criticized Activision Blizzard last year for continuing to award Kotick “outsized equity rewards” despite failing to meet performance targets.
The group even urged shareholders to vote against Management Say on Pay’s proposal, which would make these rewards possible.
CtW also launched a shareholder campaign against Electronic Arts, claiming that the publisher had demonstrated a “problem of excessive stock allocation” in the way of mass layoffs.