Recently, it was reported that Activision Blizzard CEO Bobby Kotick took the initiative to cut his salary in response to the company’s litigation crisis. Kotick said that until a series of goals are achieved, his salary will stay at the current stage. These goals include the implementation of a zero-tolerance policy for workplace harassment and an increase in the number of female and non-binary gender employees in Activision Blizzard’s offices by 50%.
However, Activision Blizzard’s move to adjust to the workplace environment has not been welcomed by the SOC Group. SOC Group has taken the lead in launching activities to resist large companies such as Activision Blizzard and EA that offer high salaries for their executives, but this time they said that although they are happy to see Kotick’s salary cuts, such changes are far from enough.
Dieter Waizenegger, executive director of the SOC Group, told the media that they would prefer to see Kotick’s employment contract cut by at least five years. He added:
We saw the statement issued by Activision Blizzard and felt mixed, and there are many problems. Although Activision has done something to address the concerns of shareholders and other stakeholders about executive salaries, wage equality, diversity, and workplace harassment, through these actions, it is far from enough to get the company back on the right track for long-term success.
The SOC Group has previously expressed clear opposition to Bobby Kotick’s $200 million. During the four-year cycle, the company’s revenue growth due to the new crown epidemic triggered a clause in the Kotick contract that gave him the $200 million reward. Waizenegger believes that Bobby Kotick’s actions are very important, and the company’s board of directors has been silent about this, which is extremely worrying:
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If this board of directors does not realize that they have the responsibility to monitor human resource costs, shareholders should elect a new board of directors that understands the importance of this aspect and play their role in the task of protecting long-term value.
Previously, the independent investigation into the human resources supervision issues exposed in the Activision sexual harassment crisis failed, and the board of directors was silent about this. We are also very disappointed. As shareholders, we call on the board of directors to stand up and shoulder their responsibilities.
Currently, SOC hopes that Activision will clearly state its commitments and prospects. SOC also stated that Activision’s current diversification goals have not addressed the lack of diversification of the board of directors and executives.