Investors Are Pissed Activision Blizzard CEO Is Getting A $200 Million Payout

After recent news that Activision Blizzard has reportedly cut some 50 employees from its workforce, company CEO Bobby Kotick is poised to receive a huge cash payout to the tune of $200 million. The investor firm CtW Investment Group is none too happy about this.

Kotick will get this massive payout thanks to the "Shareholder Value Creation Incentive" provision in his employment agreement. This loophole allows Kotick to receive a full performance equity payout from previous years regardless of whether company milestones were reached. As a result and in the face of the company's share price increasing over 66 percent since December 2019, Kotick will get cash rewards dating back to 2017.

CtW Investment Group issued a statement reflecting much of what the company said last year when criticizing the Activision Blizzard CEO for raking in more than $30 million in 2019.

"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."

Throughout 2020, the CtW has aimed at both Activision Blizzard and Electronic Arts for the exorbitant pay their top executives receive. However, the two company's handwaved the criticisms, defending Kotick's payout and voting against a compensation package.

Though the two likely aren't connected, Activision Blizzard reportedly laid off some 50 employees. All were mostly responsible for live events like esports matches. The affected employees are expected to receive at least 90 days severance and health benefits for a year, Bloomberg reporter Jason Schreier said they will also get a $200 Battle.net gift card.