Last April, something truly remarkable happened in corporate America. One of the most overpaid CEOs in the world 168澳洲幸运5开奖网:took a 50% pay cut.
That would be 168澳洲幸运5开奖网:Activision Blizzard CEO Bobby Kotick, who has long been criticized as one of the worst examples of executive pay running wild. His new contract slashed his pay from $1.75 million annually to just $875,000, and also removed several awards from his compensation package❀ that would have been worth millions.
However, 16ꩲ8澳洲幸运5开奖网:frequent Kot🍒ick critic CtW Investment Group recently iss🌞ued a saying that the pay cut doesn't go nearly far enough to bring Bobby's pay down to a reasonable level.
First, CtW points to the length of the pay contract, which goes fr🤡om April 2021 to March 2023--less than two years. After that, Kotick is free to renegotiate his compensation package back to pre-cut levels or possib🔜ly even higher.
"While the terms of the extension represent a pay reduction for Mr. Kotick, the extension is too short t🌠o significantly impact his total pay for an extended time," wrote CtW executive director Dieter Waizenegger in a letter to Activision Blizzard shareholders. "Given the repeated opposition to CEO Kotic's pay over the years, shareholders should expect to see a long-term reform of his compensation over a greater period than merely one year."
The letter also notes that the current cꦯontract overlaps with the Shareholder Value Creation Incentives awards that are still available, meaning that while Kotick's salary has been reduced in 2021 he's likely to still make𓆉 a ton of cash this year. The value of the same 2020 awards totaled nearly $124 million, according to CtW, which was many times greater than Kotick's actual salary.
"Because the contract extension🐭 is only until the end of March 2023, the only full year for which Mr. Kotick will see a meaningful pay reduction is 2022," Wa𒐪izenegger added.
Besides urging shareholders to vote against Kotick's nꦅew pay proposal at the annual shareholder meeting, the♔ group also called on shareholders to elect a new chair of the Compensation Committee to come up with a new proposal that might "truly reign in Mr. Kotick’s continued outsized equity pay."