Activision Blizzard pulls out a win on say-on-pay proposal that includes $150 million CEO pay package

Activision Blizzard Inc. and its shareholders have been at odds about the chief executive’s compensation for years, but as CEO Bobby Kotick’s 2020 pay package hit more than $150 million while the videogame publisher company laid off employees, the battle turned into an all-out war.

Varner said the company will not be able to “rest on their laurels” with the changes it has made so far. “With only 54% of votes cast in favor, the proposal nearly failed to receive majority support –– it appears Activision did just enough arm-twisting for the measure to pass,” he said, adding that say-on-pay votes in the 50% range are very rare.

The battle at Activision is part of a swelling uprising in the videogame industry, which has long put employees through high-pressure, long-hours stress periods known as “crunch” while finding new ways — “lootboxes,” “expansion packs” and more — to siphon money from their fans. The tactics have made investors rich — Activision stock is up 149% since 2016, while shares of Electronic Arts Inc. EA, -0.

In its notice of exempt solicitation filing urging shareholders to vote against the Activision proposal, CtW said that while Activision tried to address shareholders’ previous concerns about Kotick’s compensation by amending his contract, it wasn’t enough. In its proxy research report for the company, ISS called Kotick’s compensation “outsized.” It also expressed concern over new Chief Operating Officer Daniel Alegre’s pay, including that his base pay is “above the company’s peer median for the CEO position” and that the company provided “a problematic life insurance perquisite to the executive’s spouse.” Alegre’s total 2020 compensation was $12.6 million.

If your laying off employees, shouldn’t the executives also take a pay 💰 cut to retain valuable employees ?

Managerial remuneration has its cap as % of profit.

It's happening not just with Activision...

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