Investors Still Think Activision CEO Bobby Kotick Makes Too Much Money
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Grass is green, the sky is blue, and Bobby Kotick is still rich. Earlier this year, Activision halved the CEO’s pay and annual bonus target after he spent years pulling in tens of millions of dollars (even after laying off employees), resulting in sustained pressure from investors. A group representing those investors, however, doesn’t think Activision went far enough.
CtW Investment Group, the same one that previously criticised Kotick’s exorbitant price tag, has published a new letter in which it argues that the recent renegotiation of Kotick’s terms focuses on a period so brief as to render the whole thing “moot.” These new terms, CtW executive director Dieter Waizenegger points out, expire on March 31, 2023, meaning that 2022 is the only full year they even apply to.
A recent bonus payout from Activision Blizzard to its CEO Bobby Kotick is drawing outside criticism. The $200 million dollar bonus is tied to the growth in Activision Blizzard Stock value over the last couple of years, though critics argue that external factors beyond what a CEO could influence as the reason for the stock valuation.
The pushback against Kotick’s payout comes from CtW Investment Group. The firm had taken issue with the $30 million Kotick received in 2019 and reportedly have similar complaints regarding the $200 million bonus. While the increase in Activision s stock price is somewhat commendable, as we stated last year and continue to assert, this achievement alone does not justify such a substantial pay outcome for the CEO, director of executive compensation research Michael Varner said. There are many factors that may contribute to a rise in this particular company s stock price that may not be directly attributable to Robert Kotick s leadership. The use of v
The financial compensations for Bobby Kotick are once again under fire, as the Activision Blizzard CEO stands to earn a payout of up to $200 million.
The CtW Investment Group claims Activision s success over the past year has triggered the Shareholder Value Creative Incentive clause of Kotick s employment agreement, Kotaku reports.
CtW is an investor group that states its mission is to hold companies accountable for irresponsible and unethical corporate behaviour and excessive executive pay.
Due in large part to the pandemic, and a banner year for Call of Duty, Activision enjoyed a record financial year.
Over the course of the last 12 months, its stock price has jumped from $56 per share to $92, where it currently sits. Back in February, it reached over $100 per share.