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Just over half of Activision Blizzard shareholders have backed executive chairman Bobby Kotick’s $ 155 million pay package, following a delayed vote that critics described as an effort to avoid embarrassing reprimand.
After holding its annual meeting scheduled for June 14, the video game company had it postponed the meeting until Monday to deal with “misleading” information about Kotick’s 2020 pay. The delay received criticism from the Institutional Investors Council, which represents large pension funds.
“With only 54% of the vote in favor, the proposal received almost no support from the majority; it looks like Activision did enough arm for the measure to pass,” said Michael Varner, CtW’s executive salary research director Investment Group.
The company was in danger of receiving only meager support for the pay vote after CEOs Institutional Services Actionholder Services and Glass Lewis advised investors to vote against it.
“The additional time the shareholders requested allowed them to thoroughly review the facts about rigorous performance compensation compensation practices for Activision Blizzard,” a company spokeswoman said in a statement.
The company changed Kotick’s pay after shareholder comments: the 2019 payment package received support from 58% of shareholders. Activision cut Kotick’s salary in 2021 by 50% to $ 875,000 and reduced the 2021 and 2022 bonus.
Most of Kotick’s $ 155 million package for 2020 was awarded in awards related to the company’s 2016 goal of doubling the company’s market capitalization, and its shares soared last year amid the pandemic. of coronavirus. The strong performance of the shares tends to calm investors annoyed by the oversized remuneration of executives, but Kotick’s large rewards raised concerns.
Activision was under pressure from CtW, which asked other shareholders to reject the company’s executive salary.
Glass Lewis said he knew no precedent for this move to postpone a pay vote.
Investors typically pay votes from rubber stamp companies with at least 90% support. So far this year, S&P 500 companies have received 88.6% support for executive compensation, according to Semler Brossy, a salary consultant.
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