Bobby Kotick Bonus: What the Filing Reveals About the CEO's Pay

Bobby Kotick's bonus package is a hot topic, and the recent filing sheds some light on his pay. According to the filing, Kotick's total compensation for 2020 was a staggering $154.6 million.

Kotick's bonus was largely tied to Activision's performance, with a significant portion coming from the sale of the Call of Duty franchise. This suggests that Kotick's pay is closely tied to the company's success.

The filing also reveals that Kotick received a $35.5 million bonus, which is a substantial increase from his 2019 bonus of $4.3 million. This significant jump in pay has raised eyebrows and sparked debate about executive compensation.

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Bobby Kotick is set to receive a whopping $155 million payout from Activision Blizzard, despite shareholders expressing discontent with his pay package.

This payout is a result of the Shareholder Value Creative Incentive clause in Kotick's employment agreement, which was triggered due to the company's record financial year.

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The CtW Investment Group has criticized the payout, arguing that it's not justified by Kotick's performance alone, and that other factors such as the pandemic have contributed to the company's success.

Kotick's overall compensation package has been a point of contention, with some arguing that his base salary and cash bonus were reduced by 50%, only to be offset by other forms of compensation.

The Financial Times estimates that Kotick will receive an eye-watering $155 million, roughly the same as he took home last year.

This payout is not a one-time event, as Kotick is also due to receive a potential $22 million stock bonus if the Activision Blizzard board deems that he has sufficiently addressed workplace toxicity and sexual harassment allegations.

The SEC filing regarding Microsoft's acquisition of Activision Blizzard shows that Kotick could be due up to $22 million in stock this July or later.

The CtW Investment Group has previously criticized Activision Blizzard for granting Kotick "outsized equity awards" despite not meeting performance-related targets.

Activision Blizzard shareholders have voted to approve Kotick's $155m pay packet, but the vote was a narrow one, with only 54% of shareholders approving the proposal.

The decision comes following significant pressure from CtW, an investment company that "holds directors accountable for irresponsible and unethical corporate behaviour and excessive executive pay".

Kotick's pay package is still a subject of controversy, with some arguing that it's excessive and not justified by his performance.

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Activision Blizzard employees face job insecurity following layoffs of 800 employees in 2019, with some employees, such as junior developers, making less than $40,000 a year while living in high-cost areas.

The say-on-pay vote, which had been delayed to this week, won approval from 54 percent of shareholders - down from the 56.8 percent approval seen last year.

Activision Blizzard's better-than-expected 2020 revenue was $8.09bn, up from $6.49bn for 2019, but the company warned staff of impending layoffs across its offices in Europe in March.

Kotick can still earn an annual bonus up to 200 percent of his base salary, assuming he meets certain targets, which is a potential $1.75m on top of the $875,000 a year.

The Activision Blizzard board has said that under Kotick, Activision Blizzard's market capitalisation has increased from less than $10m to over $70bn, with an 8100 percent increase in shareholder return between 2000 and 2020.

In March, Activision Blizzard said it expects to hire 3000 people in 2021, mostly in production and development, but the company has a history of layoffs, including 800 people in 2019.

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Phil Spencer, the head of Xbox, started talks with Activision Blizzard shortly after allegations emerged that Bobby Kotick knew about the sexual harassment issue at the company and tried to cover it up.

These allegations tanked the company's share prices, but Kotick still owns or can acquire around $619 million in shares. This is a staggering amount of money.

Microsoft is watching Activision Blizzard to make sure the right people are in positions of power after the acquisition. This suggests that Kotick's role at the company could be up for review.

Here are some key facts about the situation:

The company is going through a major restructuring, with King.com, an Activision Blizzard subsidiary, announcing a change in leadership at the end of March.