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After the postponement of the vote, more than half of Activision’s shareholders supported CEO Bobby Kotick’s $155 million compensation package, which critics said was to avoid embarrassing condemnation.
After its scheduled annual meeting on June 14, the video game company has Adjourn Until Monday, the “misleading” information about Kotick’s 2020 salary was resolved. The delay caused criticism from the institutional investor committee representing large pension funds.
CtW Investment Group executive compensation research director Michael Varner (Michael Varner) said: “Only 54% of the votes support, the proposal almost failed to get a majority of support-it seems that the action has been enough to pass the measure. .”.
After the proxy advisory agency shareholder services and Glass Lewis suggested that investors vote against, the company is in danger of getting only meager support.
“The additional time requested by shareholders allows them to thoroughly review the facts about Activision Blizzard’s strict performance-based compensation practices,” a company spokesperson said in a statement.
The company changed Kotick’s compensation based on shareholder feedback-his 2019 compensation plan was supported by 58% of shareholders. Activision cut Kotick’s salary in 2021 by 50% to $875,000 and controlled bonuses in 2021 and 2022.
Most of Kotick’s 2020 $155 million package is rewards related to the company’s goal of doubling the company’s market value in 2016, and its stock price soared last year due to the coronavirus pandemic. Strong stock performance usually makes investors uneasy about high executive compensation, but Kotick’s huge returns have caused concern.
Activision was under pressure from CtW, and CtW called on other shareholders to reject the company’s executive compensation.
Glass Lewis stated that it does not know the precedent for this postponement of the salary vote.
Investors usually rate the company’s payment vote with a support rate of at least 90%. According to data from the compensation consulting company Semler Brossy, so far this year, the support rate for executive compensation of S&P 500 companies has reached 88.6%.
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