Stating a desire to retain Bobby Kotick as CEO in order to continue to successfully lead the company, his new pay program “reflects shareholder feedback, incorporates market best practices, and continues to directly connect pay to performance,” while reducing his compensation to match the median earned by chief executive officers of peer companies, despite Activision Blizzard’s strong relative performance within the industry.
A lot of legalese, but the result is that Bobby Kotick’s base salary is being reduced from $1,750,000 to $875,000 per year, while his maximum annual bonus will similarly be halved. How large this eventual bonus will be is determined by a number of company performance factors, but may not exceed 200% of his base salary – now reduced from a maximum potential of $3,500,000 to $1,750,000. As stated, his new base salary is in the bottom 25% of the average earned by CEOs in similar companies, while his maximum potential bonus is equal to their median.
The agreement also extends his appointment as CEO of Activision Blizzard until March 2023, and although Kotick has been frequently criticized for receiving excessive pay and bonuses in the midst of layoffs, the filing lauds the accomplishments of his 30 years as CEO: citing him as one of the longest serving Fortune 500 founders and CEOs, while also crediting him with “rescuing ATVI’s predecessor company from near insolvency.”
No public statement has been made, although Activision Blizzard’s first quarter results conference call is scheduled to take place on May 4th. Like previous investor earning reports, the call will cover the companies financials and highlight accomplishments over the past three months.