- Activision Blizzard CEO Bobby Kotick is set to halve his salary and performance bonus according to a SEC filing
- The company has been subject to criticism over the years because of layoffs while executives continued to collect big paydays
- Blizzard may be changing tact to appease fans and as a sign of goodwill towards the community
Activision Blizzard boss Bobby Kotick is reportedly halving his salary and bonus as a show of solidarity with the company.
Blizzard’s Bobby Kotick to Have Slimmer Payday
It has been over a decade since Activision and Vivendi Games merged, leading to the company’s well-established name in the gaming industry today, Activision Blizzard. Since the merger, some fans argued that the quality of their games has been declining.
While this is a subjective assessment, the fact that there have been many layoffs from the company amid soaring executives’ salaries isn’t.
Revenue may have become a priority to the disappointment disgruntled observers especially so when in 2019, the company cut 800 jobs despite posting a record-setting revenue in 2018, eliciting strong disapproval from player bases.
That may be about to change though as Activision Blizzard CEO Bobby Kotick has reportedly decided to buck the trend and show solidarity with his company and even set a good example for other executives.
According to a new filing with the Securities and Exchange Commission (SEC), Kotick has agreed to cut his salary and bonus in half, down to $875,000 from previously $1.75 million as the base salary. The executive is eligible for a performance bonus calculated as 200% of his salary depending on how well the company has performed in the financial year.
Layoffs and Company Prosperity
As the news broke, Blizzard continues to lay off employees. Some 190 people have been laid off with the chief executive set to receive a $200 million bonus. This comes following a successful 2020 which the pandemic turned into a particularly good option for entertainment and gaming companies.
In fact, Activision Blizzard’s stock reached an all-time high of $102 per share. Blizzard has not yet publicly confirmed the salary reduction, but this is probably coming up with the first-quarter earnings call scheduled for Tuesday, May 4. Meanwhile, Kotick is expected to stay in his position through 2023.