Microsoft to pay Activision Blizzard CEO a $390M payout
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Microsoft acquiring Activision Blizzard will see the latter's CEO walking with $350 million after more than 30 years in his position.
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Activision Blizzard CEO Bobby Kotick
Tech giant Microsoft has announced that it was acquiring video game producer Activision Blizzard for nearly $70 billion, possibly the priciest-ever tech acquisition, and this deal will see Activision Blizzard CEO Bobby Kotick walking with $390 million.
Employees had demanded Kotick be fired about two months ago in light of allegations about sexual misconduct within the firm, and he will be walking away from the company, just not as the employees demanded.
It is said the CEO knew about the toxic culture within the company and even partook in abuse, which included sexual misconduct and gender discrimination, but it seems that he is walking for now.
Reportedly, the vast majority of his payout comes from the 3.95 million shares he owns according to securities filings.
Forbes estimates his net worth to be at $870 million, and his payout will send him over the $1 billion threshold to $1.2 billion; however, since he does not own any unvested equities, he is not entitled to a change of control payment.
The CEO has maintained his position since 1991 after he led a group of investors in purchasing the entertainment company, and he will keep his position throughout the transition until the deal closes in 2023.
Once the deal closes, "the Activision-Blizzard business will report to Microsoft gaming chief Phil Spencer," a Microsoft spokesperson told the Wall Street Journal.
The deal will see Microsoft closing a scrutiny-filled period for Activision Blizzard.
In July, employees demonstrated following a California state lawsuit against Activision Blizzard for allegedly allowing "constant sexual harassment" in its workplace environment, which means Microsoft's reputation could take some damage over this acquisition.
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.
