Activision Blizzard is facing a vote against its superior Package paying $ 155m On Monday he delayed a protest that critics say was trying to avoid embarrassing criticism.
The video game company changed the uncontested vote of “say on pay” after their annual meeting held on June 14, delaying the participants’ decision one week on Bobby Kotick’s salary. Proxy consultant Glass Lewis said he did not know anything about this.
Activision said it wanted to address the “misleading” claims in its payment system and review the changes it has already made to Kotick’s payroll in response to its responses to its shareholders. The company declined to comment, but its idea has confused the experts and angered them financially.
“If we want the shareholders to have the right to vote, the desire for success will not make us change,” said Glenn Davis, Deputy Executive Council of Institutional Investors, which represents pensions.
“I don’t see a good reason to do this,” said Neil Macker, a Morningstar researcher who reports on Activision. While it’s a necessity, big companies sometimes fail to pay for votes “and people move on”, he said. By delaying the vote, “everything they do attracts their attention,” he said.
In most cases, retailers approve plans to pay less than 90% of the money, but Activision saw it at risk of losing this year’s vote. Only 56.8% of shareholders subsidized their 2019 payments with proxy Institutional Shareholder Services consultants and Glass Lewis urging investors to vote against 2020.
Most of Kotick’s $ 155m was in the awards tied with the 2016 goal of re-investing in the market. Activision shares won the legacy by jumping 58% in 2020 as consumer turn-ins turned to its popular franchises, from World of Warcraft to Crash Bandicoot. Working hard attracts investors because of high pay, but Kotick’s huge reward brought anxiety.
Although Activision has undergone significant changes to address the problems faced by the CEO, its total salary is 2.55 times more than the company’s age, the ISS said. It was also 1,560 times compared to the Activision intermediary, from 319: 1 in 2019.
Suspensions at meetings may be appropriate in some cases, as late development may change the terms of the sponsor competition or M&A concept, Davis of CII said, adding that “Performing is not one of these things.”
The delay in the vote was seen as a “sign of hopelessness” and a last-ditch attempt to dedicate money to investors to join the company on Kotick’s winds, says another non-executive director of Activision.
Experts in management system management software management systems management systems management systems management systems management systems management systems management systems management systems management systems management systems management systems management systems management systems management systems management systems management systems management management system management system management system management system management systems management system management system management system management system This gave him more time to ask for enough help to get through the process.
The dispute was settled out of court, but the Delaware Chancery court ruled that “states that seek to disrupt the results of those who voted for the right to vote are suspicious”, and that organizations should have “reasonable grounds” for the delay.
After a pay-to-vote vote at the end of last year, Activision increased its spread to retailers related to high-paying organizations. “But sadly and surprisingly, because of the sheer number of shares in the company, the financial rewards are far greater,” said Betty Huber, Davis Polk’s lawyer.
While pay-per-view votes do not end, Activision appears to be encouraging entrepreneurs to consider changes to the company’s performance and performance, he said.