Activision Blizzard CEO Bobby Kotick is sticking around for a while longer. His contract was set to end December 31, 2021, but it has been extended to March 31, 2023. However, the extension includes a 50% cut to his base salary as well as his annual bonus.
Activision Blizzard’s board decided to do this based on shareholder feedback and to directly connect pay to performance. It probably doesn’t help that Activision Blizzard has spent a lot of time being criticised for paying one man millions of dollars in performance bonuses while laying off staff whole divisions at a time.
For 2021 to 2023, Kotick’s annual salary will be $875,000, down from $1,75 million. However, despite all the bonuses being cut and his salary being halved, Kotick could still earn just as much. The SEC filing includes a line that the CEO is eligible for an annual bonus that can go as high as 200% of his base salary. 80% of that bonus is based on the company’s financial objectives, with 20% tied to “measurable environmental, social, and governance (“ESG”) initiatives”.
So still a LOT of money.