A shareholder group of Activision Blizzard has filed a statement to the US Government asking other Activision Blizzard shareholders to vote to deny the Management Pay on the company’s June 11 shareholder meeting because the CEO, Bobby Kotick, is making too much money per year.
The shareholder group, CtW Investment Groups’ director Dieter Waizenegger, said in a statement that the salary of Kotick is much higher than that of other CEOs in the same industry.
Kotick makes around $30 million per year, before an additional $20 million in stock equity options.
“Despite repeated low approval votes from shareholders, Activision Blizzard maintains multiple, overlapping opportunities for its CEO to earn outsize equity awards, even when performance-related vesting thresholds have not been met,” the note says. “Despite failing to disclose pertinent information on performance targets for its Short Term Incentive Plan, Activision Blizzard’s proxy statement reveals significant human capital management challenges.”
Per the released statement, Kotick has made $96 million from stock equity options in the last four years alone, on top of his yearly average salary of $30 million, which is much higher than CEOs in the gaming industry and in the entertainment industry.
“Specifically, over the past four years, Kotick has received $96.5 million cumulatively in combined stock/option awards alone,” he said. “In just 2019, he received over $28 million in combined equity, primarily consisting of options (over $20 million) that are substantially ‘in the money.’ While equity grants that exceed the total pay of peer companies would be objectionable in most circumstances, it is of special concern in this case because Activision Blizzard employees face job insecurity following layoffs of 800 employees in 2019, and typically earn less than 1/3 of 1% of the CEO’s earnings, with some employees, such as Junior Developers, making less than $40,000 a year while living in high-cost areas such as southern California.”
The shareholder group says that the high pay is “problematic” and is asking other shareholders to vote no on the motion to keep the pay at that level in the next shareholder meeting on June 11, 2020.
An Activision Blizzard spokesperson issued a statement to GameSpot defending the CEO’s pay, saying that he has lifted the company from a value of just $10 million to $53 billion during his tenure of CEO.
“During Mr. Kotick’s tenure–which is the longest of any CEO of a public technology company–Activision Blizzard’s market capitalization has increased from less than $10 million to over $53 billion dollars,” reads a line from the statement. “In the last five years, Activision Blizzard’s share price has outperformed the S&P 500 by more than 120% and over the past 20 years, under Mr. Kotick’s leadership, Activision Blizzard’s share price has outperformed the S&P 500 by over 11,000%.”
Activision issuing “hardware bans” to thwart Warzone cheaters
Activision have confirmed that they are handing out “hardware bans” to banned cheaters who keep making fresh accounts.
Cheaters and hackers have plagued Call of Duty: Warzone since its launch, but on top of account bans, Activision has confirmed that they are issuing hardware bans to thwart repeat offenders.
Cheaters have been a thorn in both players’ and developers’ sides since Warzone launched in 2020. It has been common to run into players blatantly wall-hacking and aim-botting, ruining the game for casual players and pros alike.
Raven Software has been providing regular updates on how many cheaters have been banned, and Activision recently confirmed that 475,000 permabans have been issued since Warzone’s launch. The likely reason why this number is so high is that Warzone is free-to-play. It’s widely believed that even if a cheater’s account gets banned, they can simply create a new one and carry on as if nothing happened.
Activision is aware of this issue and player’s concerns and released an in-depth update on their anti-cheat progress on April 12.
Because so many players have been concerned that account bans are ineffective, Call of Duty staff responded to this, saying that “Removing cheaters and taking away their ability to move to alternate accounts is a key focus for the security teams.”
They confirmed that if you’re cheating, not only could you be unknowingly downloading malware to your system, you could also receive a hardware ban.
To make sure players don’t keep creating fresh accounts to cheat with, Activision said, “We do issue hardware bans against repeat, or serial, cheaters. This is an important part of our effort to combat repeat offenders.”
This means that players who receive a hardware ban will be permanently locked out and won’t be able to simply create a new, free account and go back to their cheating ways.
Activision also confirmed that not only are they targeting individual accounts with cheats installed, but also “the commercial market of cheat providers and resellers.” They revealed that they have recently banned “45,000 fraudulent, black market accounts used by repeat offenders.”
Cheaters will likely still make their way into your Warzone sessions, but Activision is making sure it’s continuously more risky and difficult to do.
In the meantime, you can check out our guide on how to spot cheaters in Warzone so you can assist Activision by reporting these players.
Image Credit: Activision
Report: Activision Blizzard HQ & Treyarch offices set to relocate
A new report states Activision Blizzard will no longer lease its office space in Santa Monica and are actively searching for a new HQ location.
DoTEsports reports that Activision Blizzard and Treyarch have ended their lease at their Santa Monica HQ offices. The company has had the office under their lease for more than a decade.
Per the new report, the teams that work in those spaces will work from home until further notice.
The company is reportedly in search of a new space. An internal memo, which was sent to staff and obtained by DoTEsports, states the company is actively looking for a new office space in the Santa Monica area.
“We have narrowed down the search for our next office location to several properties in the Santa Monica area and we hope to finalize our plans in the coming weeks,” the internal company communication said.
Activision employees have been working from home since March 2020. As of now, the company says they’re on track to return to office by September 1, 2021. The timeline remains unchanged.
Activision’s main headquarters was located in the Santa Monica office on Ocean Blvd in California. Treyarch’s studio space was located right next door to Activision Blizzard HQ in Santa Monica on the first floor of an office building. The two used those buildings for over 10 years now, and are now up for rental and purchase.
Activision has not commented on this information as of now.
Investment group calls out Activision for CEO payout
Activision Blizzard’s CEO continues to rake in bonus after bonus, and now investment firms are questioning the decisions.
An investment firm, CtW, issued a statement report directed at Activision for upcoming bonus pay for their CEO, Bobby Kotick, which is valued at a remarkable $200 million.
The report states that an SEC filing and agreement between Activision Blizzard CEO and the board of directors of the company will allow the CEO to receive a bonus pay of $200 million at the end of this year.
Per the investment group, as released to GameSpot, a loophole created within Bobby Kotick’s employee agreement allows him to claim full bonus payout for previous years regardless of the company’s performance. This loophole is described in the “Shareholder Value Creation Incentive” provision in Kotick’s employment agreement. He can receive a full performance equity payout from previous years – 2017 and on. That is valued at almost $200 million, which is set to be paid out in cash upon the end date of the incentive provision.
Investment group CtW issued a scathing statement over this, as the company just this week laid off less than 2% of its workforce, which is less than 190 people for “restructuring” purposes. The lay offs impacted Activision Blizzard esports department, alongside the company’s King division.
“While the increase in Activision’s stock price is somewhat commendable, as we stated last year and continue to assert, this achievement alone does not justify such a substantial pay outcome for the CEO,” director of executive compensation research, Michael Varner, said. “There are many factors that may contribute to a rise in this particular company’s stock price that may not be directly attributable to Robert Kotick’s leadership. The use of video games as one of the few entertainment options available amid the COVID-19 pandemic, for example, has been a boon to many companies in the gaming industry irrespective of executive talent or strategic decisions.“
Bobby Kotick already makes $30 million a year from Activision thanks to his base salary and bonus yearly pay. He’s one of gaming’s highest paid executives. Activision continues to report record profits with 2020 being the company’s biggest year yet.
Activision has not commented on the latest developments on this payout.
Warzone development started in late 2017, built to match Modern Warfare feel
Infinity Ward studio heads discussed the origin of how Call of Duty: Warzone was created and pitched to Activision in...
Warzone devs already planning Season 6 & ‘several years’ of support
Call of Duty: Warzone is set to be supported for years to come, Infinity Ward studio heads confirm.
Apex Legends devs tease Valkyrie videos on Instagram
Apex Legends developers have released some inconspicuous videos on Instagram teasing gameplay of the new Legend arriving in Legacy, Valkyrie.