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Microsoft deal to ship $390 million payday for Activision’s embattled CEO

The 58-year-old government stands to obtain the payday after clinching a deal on Tuesday to promote Activision to Microsoft Corp (MSFT.O) for $68.7 billion, however the overwhelming majority will come from the three.95 million Activision stocks he owns, regulatory filings display.

He’s going to fail to spot a metamorphosis of keep watch over cost as a result of he does not personal any unvested equities, which is unusual for public corporate CEOs.

Kotick plans to step down as soon as the handle Microsoft closes, which is anticipated in June 2023, an individual aware of the subject stated. Had he stayed as Activision’s CEO, he would have reported to Microsoft’s gaming leader Phil Spencer, a some distance cry from operating a standalone corporate.

Kotick, who has led Activision since 1991 and grew to become it into some of the international’s largest videogame giants, stated in an interview on CNBC on Tuesday that the corporate had “labored thru” allegations of sexual harassment and discrimination that ended in greater than 20 workers being fired and 20 extra folks going through different sorts of disciplinary motion remaining 12 months.

A spokesperson for Kotick and Activision declined to remark.

Activision shareholders best narrowly authorized Kotick’s $155 million pay package deal remaining 12 months, after traders criticized the corporate for awarding him some of the perfect reimbursement programs within the company international.

In reaction, Activision lowered Kotick’s base wage and money bonus through 50% and made 95% of his general reimbursement topic to efficiency.

Activision additionally did away with a “transformation transaction award” that will have given Kotick a unique payout, whose price could be decided sooner or later, will have to the corporate were bought.

In October, in mild of the sexual harassment and discrimination fees on the corporate, Kotick dropped his wage to $62,500, the minimal allowed underneath California regulation and stopped receiving any bonuses or equities, vowing to support the corporate tradition.


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