Activision CEO Bobby Kotick Still Makes Too Much Money, Investors Say


Illustration for article titled Activision CEO Bobby Kotick Still Makes Too Much Money, Investors Say

Photo: Drew Angerer (Getty Images)

Grass is inexperienced, the sky is blue, and Bobby Kotick is still rich. Earlier this yr, Activision halved the CEO’s pay and annual bonus goal after he spent years pulling in tens of thousands and thousands of {dollars} (even after laying off employees), leading to sustained pressure from investors. A gaggle representing these traders, nonetheless, doesn’t assume Activision went far sufficient.

CtW Investment Group, the identical one which beforehand criticized Kotick’s exorbitant price ticket, has published a new letter wherein it argues that the latest renegotiation of Kotick’s phrases focuses on a interval so temporary as to render the entire thing “moot.” These new phrases, CtW govt director Dieter Waizenegger factors out, expire on March 31, 2023, that means that 2022 is the one full yr they even apply to.

“In other words, the extension is not long enough to represent an earnest effort by the Compensation Committee to reduce the CEO’s outsized equity pay over a sustained period,” Waizenegger wrote. “The Compensation Committee is silent about its long-term incentive approach after March 2023.”

He went on to level out that even Kotick’s yr of slumming it with all the marginally much less preposterously rich CEOs gained’t actually matter within the grand scheme of issues.

“Mr. Kotick has already received a windfall sufficiently large enough to cover reductions in pay through early 2023 because of the Shareholder Value Creation Incentive,” Waizenegger wrote, referencing a provision in Kotick’s contract that allows him to collect an enormous incentive bonus if Activision inventory stays above a sure level for 90 days. “Mr. Kotick’s 2020 equity grant had a target value of $28 million, which proxy advisor Institutional Shareholder Services notes is higher than the median total pay of CEOs in the company’s peer group ($23.4 million)…Similarly, Mr. Kotick also received his award intended for 2021 in 2020, with a grant date value of over $25 million and a maximum payout value of over $32 million.”

Shareholders, Waizenegger concluded, wish to see a discount that lasts greater than only one yr and that really addresses the underlying difficulty fairly than simply papering over it. Will that really happen? Only time will inform, however Activision positive appears intent on avoiding it if potential. But even when Kotick finally finally ends up a pauper who solely pulls in a few million {dollars} yearly, I’ve a sneaking suspicion he’ll nonetheless be wealthy.


What do you think?

0 points
Upvote Downvote

Overwatch Adds Crossplay

Battlefield 2042 Won’t Have A Campaign