Activision CEO Eligible for Over $22m in Stock Bonuses if Work Culture Improves Enough

Activision Blizzard CEO Bobby Kotick could be given $22 million in stock if he improves the company’s culture under Microsoft ownership.

One section of a regulatory filing spotted by Axios states that Kotick – who reportedly kept alleged internal sexual assault and harassment allegations from the board for years – will receive the bonus if he achieves “transformational gender-related goals and other commitments”.

Kotick announced in October 2021 that he was intending for his base salary to be reduced from $875,000 to a California miniumum of $62,500 until progress was made after a group of shareholders and more than 1,000 employees called for his resignation over the allegations.

Activision Blizzard’s Workplace Responsibility Committee, that was set up in November, will determine when the company has made “appropriate progress” towards the achievement of its goals.

These include: launching a new zero-tolerance harassment policy, increasing the percentage of women and non-binary people in Activision Blizzard’s workforce by 50%, investing $250 million to accelerate opportunities for diverse talent, waiving arbitration of individual sexual harassment claims, and increasing visibility on pay equity.

The filing also adds to the ongoing conversation around Kotick’s future at the company as it states his contract could be extended by 12 months past its current March 2023 expiration.

Microsoft initially stated that Kotick would remain in his position following the acquisition but later said it was unconfirmed, before the Wall Street Journal reported that Kotick is set to leave when the deal closes.

Kotick reportedly told senior managers in November, however, that he would consider stepping down if he couldn’t quickly fix the ongoing problems at Activision Blizzard, though the new $22 million incentive may have changed his mind.

Microsoft president Brad Smith commented earlier this month that the company will make sure it has “the right people in the right position,” though Kotick is also guaranteed $15 million of “golden parachute compensation” if Microsoft fires him without cause.

The same regulatory filing also revealed that Microsoft approached Activision Blizzard just three days after the initial report on Kotick was published.

For a full breakdown of the Activision Blizzard controversy, take a look at IGN’s timeline of events that began in July 2021.

Ryan Dinsdale is an IGN freelancer who occasionally remembers to tweet @thelastdinsdale.

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