Published , by Chris Jarrard
Published , by Chris Jarrard
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 video games as one of the few entertainment options available amid the COVID-19 pandemic, for example, has been a boon to many companies in the gaming industry irrespective of executive talent or strategic decisions."
The Activision Blizzard CEO earned the $200 million bonus as a part of the Shareholder Value Creation Incentive provision in his contract. Against recent news that the company dumped nearly 200 employees this week, the exorbitant payout to its CEO feels ill-timed at best. The former employees reportedly received ninety days severance pay and a $200 Battle.net gift card.