Activision's executive compensation is in the news again, and on the heels of layoff rumors...again.
Just how do they do it?!
Well, activist investor CtW Investment Group, is certainly helping, as they make the case that a "Shareholder Value Creation Incentive" provision in CEO Bobby Kotick's employment agreement is acting as a "loophole" to normal bonus metric calculations...and giving him $200M in the process.
But are they right? And just what do layoffs in Activision's eSports division (or the issuance of $200 BattleNet gift cards) have to do with it anyway?
Negotiated override provisions aren't "loopholes"...in Virtual Legality.
#Activision #Compensation #Layoffs
Discussed in this episode:
"Investor Group Pissed Activision Blizzard CEO Is Getting A $200 Million Payout"
Gamespot - March 17, 2021
"Mutiny! EA's Shareholders are NOT Happy (VL282)"
YouTube Video - August 11, 2020 - Hoeg Law
Change to Win Webpage
CtW Investment Group "Engagements"
Form 8-K (Robert A. Kotick Employment Agreement)
Filed November 25, 2016
"Activision Fires Dozens Amid Shift Away From Live Events"
Bloomberg - March 16, 2021
"Activision Blizzard lays off 50 employees as the company reexamines its live event business"
GameDailyBiz - March 17, 2021
"Virtual Legality" is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).
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