Activision CEO Bobby Kotick is paid more than $20 million per year. This makes him one of the most overpaid chief executives in the US. Not only that, but a report also claimed that he earned more than $28.5 Million in 2019. This was completely shocking because no games industry CEO has been ever paid that much.
Well, coming to the topic today. Dieter Waizenegger, executive director of the Ctw Investment group is pushing Kotic’s future compensation package. According to Waizenegger, Kotich has received $96.5 Million in the past four years. He also criticized his pay, saying that typical employees at Activision Blizzard earn less than 1/3 percent of 1 percent of the CEO’s earning. He also mentioned that some junior developers are making less than $40,000 per year while living in expensive places in southern California.
“Over the past four years, Activision Blizzard CEO Robert Kotick has received over $20 million in combined stock/option equity per year. These equity grants have consistently been larger than the total pay (the sum of base salary, annual bonus, and equity pay) of CEO peers at similar companies,” Waizenegger wrote. “Specifically, over the past four years, Kotick has received $96.5 million cumulatively in combined stock/option awards alone. In just 2019, he received over $28 million in combined equity, primarily consisting of options (over $20 million) that are substantially ‘in the money’.
“While equity grants that exceed the total pay of peer companies would be objectionable in most circumstances, it is of special concern in this case because Activision Blizzard employees face job insecurity following layoffs of 800 employees in 2019, and typically earn less than 1/3 of 1 percent of the CEO’s earnings, with some employees, such as Junior Developers, making less than $40,000 a year while living in high-cost areas such as southern California.”
Kotick’s pay was agreed by all shareholders, because of his incredible performance. Kotick took charged of the company in 1991, after which he took the company’s worth from less than $10 million to over $53 Billion dollars. Moreover, Activision’s Blizzard share price has outperformed the S&P 500 by more than 120 percent. His leadership is remarkable, and the major growth of Activision Blizzard credits goes to him.
“During Mr. Kotick’s tenure—which is the longest of any CEO of a public technology company—Activision Blizzard’s market capitalization has increased from less than $10 million to over $53 billion dollars,” a spokesperson said. “In the last five years, Activision Blizzard’s share price has outperformed the S&P 500 by more than 120 percent and over the past 20 years, under Mr. Kotick’s leadership, Activision Blizzard’s share price has outperformed the S&P 500 by over 11,000 percent.”
Waizenegger argues that these multi-million wages and awards can cause issues on a deeper level. This needs to be addressed and perhaps solved. Due to the current situation, the company will also look for ways to save money, and one way to do it could be lowering Kotic’s wages. Lastly, the shareholders meeting is scheduled for June 11, and afterward, we will see the results