Activision Blizzard is one of the largest gaming publishers in the West with titles like Call of Duty: Warzone, World of Warcraft, Diablo 3, and Overwatch. The CEO of the company earned about 28 million $ in 2019. An investment group believes that is too much. However, the company defends its CEO.
How much money did Bobby Kotick earn? As HollywoodReporter knows, Bobby Kotick earned about 30.1 million US dollars in 2019. This is approximately 26.5 million euros. In 2018, Kotick had made 30.8 million $.
The investment group that is now complaining states that “over 28 million $” is what Kotick supposedly earned in 2019.
Most of the money Kotick received came from stock options. According to the leading group’s complaint, the shares are worth over 20 million $ a year, in addition to a base salary. In the last 4 years, Kotick is said to have earned 96.5 million $ alone from stocks and options.
Much Money Despite Layoffs and Low Pay for Employees
This is the criticism: An investment group accuses Activision Blizzard of “finding multiple ways to unnecessarily enrich the CEO.” The investment group aims to act against “unethically high and irresponsible payments to managers.”
According to their argument, the shares that Kotick receives each year would be worth more than the total compensation of CEOs of similar companies. What other CEOs receive in base salary, bonuses, and shares does not compare to what Kotick receives solely in shares.
Kotick’s high compensation is particularly inappropriate in 2019 because Activision Blizzard laid off 800 employees last year. Furthermore, employees receive less than one-third of 1% of the CEO’s earnings. Some junior developers earn merely 40,000$ a year, even though they live in the exorbitantly expensive Southern California.
Kotick’s contract would provide him with several overlapping benefits. The group then lists exactly which clauses they consider problematic.
The group is now urging Activision Blizzard’s shareholders to vote against the proposal at the next investor conference that promises Kotick a similar payment for the next fiscal year.
“Exceptionally Valuable for Shareholders”
This is what Activision Blizzard says: Activision Blizzard has reached out to GameSpot and defended Kotick’s compensation:
- Since Kotick has been with the company (since 1991), Activision Blizzard’s market capitalization has risen from less than 10 million $ to over 53 billion dollars
- In the last 5 years, the stock price of Activision Blizzard has outperformed the S&P 500 by more than 120% – the stock has developed very well against the market
- The stock would have performed even better if one looks at the price over 20 years during which Kotick has been at the helm
- 90% of the money Kotick earns is based on his performance, which is of “exceptional value” to the shareholders of Activision Blizzard
Activision Blizzard recently announced that it is looking for 2000 new employees. Kotick himself has set the goal to achieve one billion players worldwide within 5 years for Activision Blizzard.
Kotick has been CEO of Activision since 1991. In 2008, he initiated the merger of Activision and Blizzard into Activision Blizzard. He has served as CEO since 2008.
Core gamers are particularly critical of Blizzard and the company’s development in recent years.
An insider report from January 2020 painted a bleak picture of what is currently happening at Blizzard. The pressure to cut costs is taking a toll on the employees.
