Activision Blizzard Investors Concerned About Bobby Kotick's Bonuses
Activision Blizzard CEO Bobby Kotick will receive further bonuses despite continuing layoffs at the company. The situation has the investors worried.
- CtW Investment Group is opposing another bonus for Bobby Kotick;
- He is to receive $200 million due to the increase in the value of the company;
- At the same time, Activision Blizzard has laid off more employees.
Activision Blizzard is a company that has seen its value rise during the pandemic. This is a trend that affects many digital entertainment corporations. COVID-19 caused people to spend more time at home and engage in gaming. Despite this, another group of 50 peoplewere laid off by the company recently. The events team received a 90-day severance package, annual health benefits and a $200 gift card to Battle Net as a farewell. In turn, the company's CEO, Bobby Kotick can look forward to a $200 million bonus.
This situation has worried not only industry commentators, but also the company's investors. CtW Investment Group issued a statement opposing Kotick's bonus. According to them, the CEO of Activision Blizzard is not personally responsible for increasing the company's value. Therefore, the incentive bonus from shareholders should not be granted.
“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. 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.”
This isn't the first time CtW Investment Group has protested Kotick's salary. Last June, they also objected to similar rewards. At that time, they were supported by 40% of all the company's investors. For some time, the #FireBobbyKotick campaign was also present on social media, becoming popular among ordinary users. So far, however, all acts of protest against Kotick's salary have not led to any tangible results.
