Activision Blizzard Reaches New Pay Deal With CEO
November 26 2016 - 5:21AM
Dow Jones News
By Brian R. Fitzgerald
Activision Blizzard Inc. reached a new employment agreement with
longtime Chief Executive Bobby Kotick that could put him among the
highest paid executives in the U.S.
In a filing Friday with the Securities and Exchange Commission,
Activision Blizzard said Mr. Kotick's base salary will be lowered
to $1.8 million from $2.4 million beginning Jan. 1, 2017.
The CEO, however, stands to reap as much as $56.3 million in
Activision Blizzard shares over three years depending on whether
the company meets particular earnings targets and other objectives,
according to the filing.
The target value of compensation from shares under the agreement
is $22.5 million, the company said. Mr. Kotick is also eligible for
annual performance-based bonuses.
The top paid chief last year was Dara Khosrowshahi of Expedia
Inc., who received compensation of $94.6 million, largely from
stock options, according to a Wall Street Journal analysis of data
provided by MyLogIQ LLC, a securities-filing data service.
Activision Blizzard, the biggest videogame publisher in the U.S.
by market value, said it entered into the agreement with Mr. Kotick
on Nov. 22.
Mr. Kotick has been at the helm of Activision for more than 25
years, having seen the company through a 2009 acquisition by
Vivendi SA, which merged the company with its own games division to
create Activision Blizzard.
Vivendi sold its position in the publisher in 2013.
Activision Blizzard has expanded under Mr. Kotick since
separating from Vivendi. Earlier this year, the company closed a
$5.9 billion acquisition of "Candy Crush Saga" maker King Digital
Entertainment PLC, instantly becoming a chief player in the hot new
arena of gaming via apps on mobile devices.
Activision Blizzard, which makes the popular franchise "Call of
Duty," recently scored a new hit with the team-based shooter
"Overwatch." Activision Blizzard plans to build a professional
league around the game, pushing deeper into the burgeoning e-sports
industry.
Earlier in November, Activision Blizzard said its third-quarter
revenue rose 58% from a year ago to $1.57 billion. Net income
climbed 56% to $199 million and the company raised its full-year
outlook despite projecting weaker sales from its latest "Call of
Duty" game this holiday season compared with a year ago.
Write to Brian R. Fitzgerald at brian-r.fitzgerald@wsj.com
(END) Dow Jones Newswires
November 26, 2016 05:06 ET (10:06 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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