Investment group slams Activision CEO Bobby Kotick’s massive bonus payment | PC Gamer - smithflemen
Investment funds group slams Activision CEO Bobby Kotick's massive bonus payment
CtW Investment Group, which "works with Union-sponsored pension funds to heighten long-term shareholder value," has issued a statement criticizing a "Shareholder Value Macrocosm Motivator" bonus defrayment to Activision Chief operating officer Bobby Kotick that it says is worth nearly $200 million.
A provision in Kotick's employment contract (via Gamespot) provides for "additional awards and payments ... in the event that predictable 'Shareholder Value Creation' metrics are satisfied prior to December 31, 2021." Those metrics are supported the company's compound annual growth value, and patc IT's all very complex and mostly over my head, the short translation is that the payout testament be triggered at the level bes value if, prior to the end of 2021, the fellowship's share price is leastwise twice the average value information technology was between October 1 and Dec 31, 2016, and holds that price for at least 90 straight days.
Activision's part Leontyne Price has surged sufficiently in 2021 to trigger the full payout: "Happening March 1, 2021, the performance conditions for the four-year functioning period from 1/1/17 done 12/31/20 inexplicit these public presentation stock unit awards were achieved at the uttermost level," Activision same in an SEC filing made earlier this calendar month.
"While the increase in Activision's stock price is somewhat worthy, as we expressed shoemaker's last year and continue to insist, this achievement entirely does not justify such a significant pay outcome for the CEO," CtW Investment Group Director of Executive Compensation Research Michael Varner said in a affirmation.
"There are many factors that may contribute to a rise in this peculiar troupe's stock damage that English hawthorn not live straight attributable to Robert Kotick's leadership. The manipulation of videogames as one of the few entertainment options lendable amid the Covid-19 pandemic, for example, has been a boon to many companies in the gaming industry irrespective of executive director natural endowment or strategic decisions."
This ISN't the front fourth dimension that CtW Investment Group has taken aim at Kotick and Activision: In June 2020 it called upon shareholders to vote against executive compensation packages at the company's yearly shareholder meeting: Kotick's annual fairness grants solo "have consistently been big than the total devote (the substance of base salary, annual bonus, and equity pay) of Chief operating officer peers at similar companies," executive Dieter Waizenegger said at the clock time, while Activision employees "typically earn to a lesser extent than 1/3 of 1 percentage of the CEO's lucre."
It levelled similar unfavorable judgment at Electronic Arts around the duplicate time, saying it "loaded up its top executives, including two executives with ii special awards each, patc its workers faced massive layoffs endure year." The bid to halt Activision's "Say on Pay" proposal unsuccessful, but astonishingly, shareholders rejected the proposed package for EA executives.
Patc the two events are not directly related, Kotick's looming payout seems specially egregious in light of the recent layoffs of virtually 190 Activision Blizzard employees, including roughly 50 from the company's esports variance.
Source: https://www.pcgamer.com/investment-group-slams-activision-ceo-bobby-koticks-massive-bonus-payment/
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