In an extension agreement filed with the SEC, Activision Blizzard CEO Bobby Kotick agreed to cut to lower his personal earnings. Namely, Bobby Kotick has agreed to cut both his salary and annual bonus by 50%.
The agreement also appoints his extension as CEO at Activision Blizzard until Match 2023, making him the longest-serving Fortune 500 founders and CEOs, with numerous company-saving movements performed in his past.
Bobby Kotick’s annual salary is going to be reduced from $1,750,000 to $875,000. His yearly bonus will also be halved, which already denies the plots about him receiving extra payments during a massive company layoff.
According to the official document:
Taking into account the feedback received through this extensive outreach program and the Board’s desire to retain the CEO to continue to successfully lead the Company into the future, the Board determined that it is in the best interest of the Company and its shareholders to extend the Employment Agreement until March 31, 2023, pursuant to the Extension Amendment. The Board worked with the Company and has established a pay program for the CEO that reflects shareholder feedback, incorporates market best practices, and continues to directly connect pay to performance. In addition to removing the “Transformation Transaction Award” and, with respect to any equity awards granted on or after the Amendment Date, the “Shareholder Value Creation Incentive,” the Extension Amendment aligns target CEO compensation at or below median peer group compensation targets with respect to expected pay and equity grants made in 2021 and 2022.
The CEO voluntarily agreed to reduce his base salary by 15% in 2020. Under the Extension Amendment, effective January 1, 2021, the Compensation Committee and CEO agreed to reduce his contractually agreed-upon base salary by 50%, to align with targets established at the bottom 25th percentile of the Company’s peer group, despite the Company’s strong relative performance. The Extension Amendment does not provide for any guaranteed annual base salary increases.
While there’s no additional or public statement by Activision Blizzard, there is a first-quarter conference call scheduled to take place on May 4th.