We've almost come to expect Activision Blizzard's excellent financial results to be immediately followed by layoffs and executive bonuses, and it appears that an investment group is also displeased about the latter.
The layoffs in question weren't as severe as before, but 50 esports employees aren't exactly nothing either, as these men and women have to find work elsewhere.
At the same time, Activision Blizzard reported excellent results, with major increases in the company's stock price compared to last year. As you'd expect, this came with a hefty bonus for the CEO, Bobby Kotick, but not everyone is delighted about his $200 million payout.
Investor firm CtW Investment Group, whom you may recall from their earlier complaints about Kotick's lavish bonuses, has once again voiced their displeasure about the CEO's bonus, arguing that there really is no justification for it.
"While the increase in Activision's stock price is somewhat commendable, as we stated last year and continue to assert, this achievement alone does not justify such a substantial pay outcome for the CEO", director of executive compensation research Michael Varner told Gamespot.
"There are many factors that may contribute to a rise in this particular company's stock price that may not be directly attributable to Robert Kotick's leadership. The use of video games as one of the few entertainment options available amid the COVID-19 pandemic, for example, has been a boon to many companies in the gaming industry irrespective of executive talent or strategic decisions."
Activision Blizzard
As for the layoffs, they were a result of Activision Blizzard reacting to the pandemic and attempting to reinvent the esports division for a future with less live events, and more online coverage.
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