As reported by CtW Investment Group, Activision Blizzard CEO Bobby Kotick will be receiving a total amount of $200 million cash payout. In the statement, it is mentioned that this decision comes from a loophole inside the system.
The main reason behind this huge cash payout seems to be the “Shareholder Value Creation Incentive” provision which is included in Kotick’s employment agreement clauses. The clauses allow Kotick to receive cash that is equivalent to a full performance bonus. Neither Bobby Kotick’s performance nor milestones that are reached don’t have any effect on this, as the clause shows so.
CtW Investment Group made a statement showing what they meant when criticizing the CEO of Activision Blizzard last year for what he has done back in 2019. Michael Varner, director of executive compensation research, has issued the statement to the public.
“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.”