Activision Blizzard CEO Bobby Kotick has gone from defending the handling of sexual harassment and discrimination claims at the video game maker to preparing to leave with little pay. 390 million dollars (approximately Rs. 2,910 crore).
The 58-year-old CEO will receive a payday after a sale is reached on Tuesday Activision arrive Microsoft for $68.7 billion (about Rs 5,13,090), but most will come from the 3.95 million Activision shares he owns, regulatory filings show.
He would miss out on changing the controlling payout because he doesn’t own any uninvested shares, which is uncommon for public company CEOs.
Kotick plans to step down when the deal with Microsoft ends, scheduled for June 2023, a person familiar with the matter said. If he stays as CEO of Activision, he will have to report to Microsoft’s head of games, Phil Spencer, a far cry from running an independent company.
Kotick, who has led Activision since 1991 and turned it into one of the largest video game giants in the world, said in a Interview on CNBC on Tuesday that the company was “working through” allegations of sexual harassment and discrimination that resulted in more than 20 employees being fired and 20 other individuals facing further disciplinary action on Tuesday. last year.
Spokespersons for Kotick and Activision declined to comment.
Activision shareholders only approved Kotick’s $155 million (approximately Rs 1,160) payment package last year, after investors criticized the company for giving him one of its highest compensation packages. in the business world.
In response, Activision reduced Kotick’s base salary and cash bonuses by 50% and made 95% of his total compensation depending on performance.
Activision has also removed the “converting transaction award” that would give Kotick a special payout, the value of which will be determined in the future, should the company be sold.
In October, because of allegations of sexual harassment and discrimination at the company, Kotick reduced his salary to $62,500 (about Rs 46 lakh), the minimum allowed under California law, and stopped accepting any bonus or stock, and vowed to improve company culture. .
© Thomson Reuters 2022
