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Home Gadgets Microsoft deal to deliver $390 million payday for Activision's embattled CEO

Microsoft deal to deliver $390 million payday for Activision’s embattled CEO

Activision Blizzard Inc’s chief govt officer Bobby Kotick has gone from defending his dealing with of sexual harassment and discrimination claims on the online game maker to getting ready to stroll away with a windfall of at the least $390 million.

The 58-year-old govt stands to obtain the payday after clinching a deal on Tuesday to promote Activision to Microsoft Corp for $68.7 billion, however the overwhelming majority will come from the three.95 million Activision shares he owns, regulatory filings present.

He’ll miss out on a change of management fee as a result of he does not personal any unvested equities, which is rare for public firm CEOs.

Kotick plans to step down as soon as the cope with Microsoft closes, which is predicted in June 2023, an individual accustomed to the matter stated. Had he stayed as Activision’s CEO, he would have reported to Microsoft’s gaming chief Phil Spencer, a far cry from working a standalone firm.

Kotick, who has led Activision since 1991 and turned it into one of many world’s largest videogame giants, stated in an interview on CNBC on Tuesday that the corporate had “labored by” allegations of sexual harassment and discrimination that led to greater than 20 workers being fired and 20 extra people going through different types of disciplinary motion final yr.

A spokesperson for Kotick and Activision declined to remark.

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Activision shareholders solely narrowly authorised Kotick’s $155 million pay package deal final yr, after buyers criticized the corporate for awarding him one of many highest compensation packages within the company world.

In response, Activision decreased Kotick’s base wage and money bonus by 50% and made 95% of his whole compensation topic to efficiency.

Activision additionally did away with a “transformation transaction award” that will have given Kotick a particular payout, whose worth can be decided sooner or later, ought to the corporate have been bought.

In October, in gentle of the sexual harassment and discrimination prices on the firm, Kotick dropped his wage to $62,500, the minimal allowed below California regulation and stopped receiving any bonuses or equities, vowing to enhance the corporate tradition.

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