It is not the first time that the investment group CtW criticizes Boby Kotick’s pay, CEO of Activision Blizzard (earned $ 200 million in bonus while layoffs occurred). The CEO of the company recently extended his contract until 2023, and although this renewal is accompanied by a reduction in remuneration, the aforementioned group has published a statement exposing their buts about it.
“This year, the Activision Blizzard board of directors amended and extended Robert Kotick’s contract through March 2023,” they explain. Although the terms contemplate a reduction In compensation, the renewal is “too short” to “impact your total pay” for a long time. According to the statement, shareholders should oppose and expect “a long-term reform of their compensation.”
Renegotiation of the contract
The worry is that as it is a short-term contract, Kotick can renegotiate an upward renewal within a while. “The only full year in which Mr. Kotick will receive a significant pay cut is 2022,” CtW notes. “In other words, the renewal is not long enough to represent a serious effort on the part of the Compensation Committee to reduce their excessive compensation over a substantial period of time.”
The investment group recalls that Boby Kotick’s initial contract was for 5 years (from October 1, 2016 to December 31, 2021). Later, in April 2021, it was extended for 2 more years, until March 31, 2023. Meanwhile, Activision Blizzard has undergone a restructuring in Europe. In fact, the offices in Spain have recently closed, so all communication will be handled by Koch Media from now on.
Activision Blizzard is the company of Call of Duty: Black Ops Cold War y Call of Duty: Warzone, but it also has licenses like Crash Bandicoot or all Blizzard Entertainment video games, with titles like Overwatch 2 or Diablo IV on the horizon.
Source | PC Gamer