Activision-Blizzard, the company behind Call of Duty and Overwatch, has been under scrutiny lately for its executive bonuses. The company is said to be considering a change in policy that would eliminate the bonus payments.
Activision-Blizzard’s CEO recently announced that the company will end bonuses for executives. This could mean that the end of millions in executive bonuses.
It’s a plan that Activision-Blizzard shareholders have yet to vote on, but it has the potential to eliminate millions in CEO compensation. It may also assist in making the business a more common place to work for everyone.
They believe that true transformation comes when it strikes you square in the face. And it’s possible that’s all Activision-Blizzard needed to get beyond the sexual harassment accusations that have already damaged the company’s reputation. Although this has been the most widely discussed topic in recent weeks, it is far from the only criticism leveled at the business, which has also been chastised for the large amounts handed out in yearly bonuses to executives. We’re not talking about a raise in pay here; we’re talking about rewards worth up to $200 million. Because of the poor handling of sexual harassment complaints, executives will not be allowed to collect their bonuses this year, as requested by shareholders.
Before we go any further, it’s important to remember that this is simply a proposal that’s being put to a vote; it doesn’t mean anything has been decided. According to Gamesindustry, the concept has a lengthy history. Even if this suggestion was repeatedly voted down in the end, the SOC Investment Group has been pushing Activision-Blizzard and EA to examine the large sums of money their CEOs earn yearly for months.
The SOC Investment Group argues that the incentive criteria, which are mainly focused on internal performance, are unfair for both businesses. As a result, it started by pointing out that Activision-CEO, Blizzard’s Bobby Kotick, had become “unnecessarily enriched.” As a consequence, Kotick’s pay was cut in half, although he still kept his yearly bonuses.
Recent accusations of a hostile working atmosphere in the Activision-Blizzard headquarters have complicated things, forcing the firm to make adjustments that workers say have not been implemented. This, along with the fact that the Activision-Blizzard issue has caught the attention of government agencies and the Securities and Exchange Commission, which is now investigating Kotick, has pushed SOC Investment Group to make financial and diversity reforms to the business.
They’ve demanded a change of the Board of Directors, which now has just two women among its ten members. They argue that the company’s executives should not earn an annual bonus since the “sexual harassment issue remains unaddressed.” “Bonuses should be dependent on Activision-Blizzard achieving specific equity, diversity, and inclusion benchmarks,” the investor group says.
SOC Investment Group claims that the company was already having issues with investor satisfaction before the sexual harassment scandal: “Activision-Blizzard was already having difficulty gaining shareholder support before the big scandal surrounding the company’s environment because the company was solely focused on executive pay, so I think there is some basis to believe that in this case.”
Of course, the company is experiencing turbulence that could have a long-term impact on its image, so it’s not surprising that, in the wake of what happened, as well as the recent resignations of Overwatch’s executive producer and Blizzard’s legal chief, it’s taking steps to not only cut millions in executive bonuses, but also to ensure a fair working environment for all.
Game Industry as a Source
The blizzard layoffs 2020 is a possibility that has been discussed by many people. Activision-Blizzard are considering ending millions in executive bonuses.
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