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Bobby Kotick, CEO of Activision Blizzard Inc. could walk away with as much as $520 million if Microsoft Corp. completes its planned acquisition of the videogame company.

Activision said in a securities filing, on Friday, that Kotick would receive $14.4 million in severance pay if he is terminated or quits under a variety of circumstances within a year of the company's change of control. It also stated that Kotick owns 4.3 million shares and has the option to purchase another 2.2 million, for a total value of just over $500 million at the $95-per-share deal price. According to the filing, Kotick received $826,549 in compensation in 2021.

Activision's annual proxy statement, released on Friday, reflects the company's definitive accounting for Kotick's stake in the company and potential severance under existing agreements.

It gives investors their best look to date at the potential windfall Kotick could receive as a result of the acquisition, which is subject to regulatory approval. Activision and Microsoft have stated that they will close in the spring of 2023.

On Thursday, Activision announced that its shareholders had approved the merger.

Kotick, 59, was among those who purchased the assets of the company that would become Activision Blizzard in 1991. He has been the company's CEO ever since, making him one of the most tenured executives in the history of a publicly-traded technology company. Kotick is expected to leave Activision once the deal is completed, according to a report in the Wall Street Journal.

Activision also stated in its regulatory filings that Kotick will not receive any additional equity or have his rights to any equity awards accelerated as a result of the acquisition, or whether he should leave as a result of the transaction.

It is worth mentioning that Kotick was paid $155 million by Activision in 2020, mostly in stock options, making him the second-highest-paid CEO in The Wall Street Journal's annual analysis of compensation for S&P 500 CEOs. At the time, Activision's lead independent director, Robert Morgado, stated that the CEO's pay was earned over four years and reflected more than three decades of creating value for shareholders.

Activision, headquartered in Santa Monica, California, employs approximately 10,000 people and is best known for its Call of Duty, World of Warcraft, and Candy Crush franchises.

Kotick has been embroiled in controversy, with state and federal regulators accusing Activision of mishandling employee sexual harassment cases and gender pay disparities. He stated in October that he had asked Activision's board of directors to reduce his salary to the minimum allowed by California law for salaried workers—$62,500—and that he would forego bonuses and equity grants. 

A California judge approved an $18 million settlement between Activision and the Equal Employment Opportunity Commission, which had been investigating the company for allegations of sexual harassment and retaliation, in late March.

Separately, Activision was sued in July by the California Department of Fair Employment and Housing for allegedly ignoring complaints of blatant harassment, discrimination, and retaliation by female employees. According to the company, the lawsuit contains distorted and, in many cases, false descriptions of its past, as it strives to pay all employees fairly.

In November, Activision was subject to criticism over desecrating and disrespectfully using Quranic text.

The game developers included pages of the Quran on the floor of a Call of Duty Vanguard Zombies map, so Activision Blizzard doesn't necessarily have the best reputation.

Activision is also being investigated by the Securities and Exchange Commission for allegations of sexual misconduct and workplace discrimination made by employees. On its part, Activision has claimed that it is cooperating with the agency.