CtW Investment Group, whose mission is to ‘hold directors accountable for irresponsible and unethical corporate conduct’, has issued a condemnation of the reported $ 200 million bonus that Activision Blizzard chief executive officer Bobby Kotick is set to receive as part of a “Shareholder Value Creation Incentive” in its service agreement to the company announced it fired 50 employees on Tuesday.
“While the rise in Activision’s share price is somewhat commendable, as we said last year and still claim, this performance does not justify such a significant salary outcome for the CEO,” said Michael Varner, CEO of executive compensation. ‘There are many factors that could contribute to a rise in the company’s share price, which may not be directly attributable to Robert Kotick’s leadership. Using video games as one of the few entertainment options available amidst the COVID-19 pandemic, for example, has been a boon for many companies in the gambling industry, regardless of executive talent or strategic decisions. ‘
As reported by Games Spot, Kotick is the beneficiary of a provision in the section “Shareholder value creation incentive” included in its employment agreement, which allows the CEO to receive the full amount, as it relates to the payment of shares of the past years, regardless of whether certain goals or milestones have been achieved. As a result, Kotick is on the receiving end of cash rewards that run through 2017.
The $ 200 million bonus that Kotick will receive is considered annoying by fans of the video game and sports giant, as the company has now fired people twice after posting record earnings over the past three years.
In its revenue call for the fourth quarter of 2018 that took place in early 2019, Kotick referred to 2018 as ‘the best in our history’ and beyond fired 8% of the company’s workforce in total about 750 people. And now that Kotick wants to receive a $ 200 million bonus, Activision Blizzard will lay off another 190 people, with 50 of them coming from positions related to esports.
The Esports Observer reached out to Activision Blizzard for comment on this story.