Last year, Activision CEO Bobby Kotick ranked as the "most overpaid" CEO in the United States, earning more than $28.5 million in 2019, according to shareholder advocacy website As You Sow. This is the top ranking among CEOs in the gaming industry, but he is a distant 45th in the overall ranking. Ninety-two percent of Activision shareholders voted in favor of his astronomical salary package.

This year, CtW Investment Group, a "substantial" shareholder of Activision Blizzard, which "works with union-sponsored pension funds to increase long-term shareholder value," is pushing back against Kotick's future compensation package. In a filing with the Securities and Exchange Commission, Executive Director Dieter Weisenegger called on shareholders to vote against the proposed "Say-On-Pay" approval of executive compensation to be proposed at the upcoming annual shareholders meeting.

"For the past four years, Activision Blizzard CEO Robert Kotick has received more than $20 million per year in stock and options combined. These equity awards have consistently been greater than the total salaries (base salary, annual bonus, and equity compensation combined) of CEOs in his industry. "Specifically, over the past four years, Kotick has received a cumulative $96.5 million in combined equity and option compensation alone; in 2019 alone, he received over $28 million in equity, consisting primarily of options (over $20 million) that are effectively "in the money."

"While equity grants above peer payroll are undesirable in most circumstances, Activision Blizzard employees face job insecurity after laying off 800 employees in 2019, typically less than 1/3 of the CEO's income, and junior Some employees, such as developers, are of particular concern in this case because they make less than $40,000 a year while living in high-cost areas like Southern California."

Weisenegger said that part of Kotick's salary package is tied to performance, and while he acknowledged that Activision's performance has been strong, his compensation is not at all proportional to his work. He also pointed to the layoffs of hundreds of employees last year and said that "Activision Blizzard's distorted approach to human capital management - rewarding the CEO with millions of dollars while employees face layoffs - needs to be addressed before it develops into a more serious management problem."

CtW's filing drew a clear line in the sand, but does not necessarily reflect a broader backlash against excessive executive compensation; Nasdaq reports that investment services firm Glass Lewis and Co. had previously voted against CEO compensation packages but voted in favor this year. Activision also cited as "erroneous" and "inaccurate" the negative analysis of proxy advisory firm Institutional Shareholder Services cited by CtW's recommendation in its SEC filing urging investors to support the proposal, the proposed pay package

"The company defends the

"As a truly international company driven by creative and technological innovation, Activision Blizzard's people are its most important asset. Attracting, retaining and motivating top talent is one of our greatest challenges. The compensation paid to our executive officers enables us to attract, retain, and motivate the key management talent necessary for our long-term success and track record of shareholder value creation."

In a statement to Gamespot, the company also highlighted the value Kotick brought to the company during this long tenure as CEO, which began in 1991 after he and his partners acquired the then bankrupt company known as Mediagenic.

"Mr. Kotick has been a great asset to the company."[17] [17 Activision Blizzard's market capitalization has increased from less than $10 million to more than $53 billion. Over the past five years, Activision Blizzard's stock 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 stock price has outperformed the S&P 500 by more than 11,000%."

"Over 90% of Mr. Kotick's proxy reporting fees are performance-based and he has delivered outstanding value to Activision Blizzard shareholders. Our stock dilution ratio remains among the lowest in our peer group.

Activision Blizzard's annual shareholders meeting will be held on June 11; due to the ongoing COVID-19 epidemic, this year's event will be held online.