Following numerous criticisms from firm shareholders, Activision Blizzard head honcho Bobby Kotick has agreed to cut his wage by 50% in a brand new employment settlement that’ll see him stick round till March 31, 2023, in any case.
That comes from a recent extension agreement (thanks, Wowhead) that additional notes that the CEO voluntarily took the pay discount to align his wage with firm targets. The discount equates to an $875,000 lower, to put a quantity on it. Kotick has additionally agreed to cut back his goal annual bonus by the identical share, which may see a pay discount of $1,750,000 for every fiscal yr 2021 and 2022. It’s not all dangerous information for Kotick, although, as he may nonetheless earn an annual bonus to the tune of 200% of his decreased base wage in 2021 and 2022. The submitting claims that the brand new deal higher “reflects shareholder feedback, incorporates market best practices, and continues to directly connect pay to performance”.
Last month, an funding group representing a few of Activision Blizzard’s shareholders criticised a pay package that will’ve seen Kotick snag $200 million in bonuses. Just a yr prior, the identical group argued in a filing with the United States Securities and Exchange Commission that the corporate “finds multiple ways to unnecessarily enrich its CEO”. The submitting was spurred on by the idea that Kotick’s proposed compensation on the time wasn’t inline with the corporate’s targets and outcomes.
CtW Investment Group govt director Dieter Waizenegger additional raised considerations over how a lot Kotick was making as 800 workers have been laid off in 2019, with a few of them incomes “less than 1/3 of 1% of the CEO’s earnings” at that time limit.
Activision Blizzard is at present set to ship its first-quarter outcomes convention on May 4.
Image credit score: Photo through Jordan Matter (CC BY SA 2.0)