Deals
Don’t Be Surprised When Activision Blizzard CEO Does a Big Deal
- Kotick promised awards for ‘transformative transaction’
- Some experts argue M&A doesn’t warrant additional pay
Robert 'Bobby' Kotick, chief executive officer, Activision Blizzard.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Activision Blizzard Inc. is giving Chief Executive Officer Robert Kotick major financial incentives to do deals -- a form of compensation that’s become increasingly unusual amid investor scrutiny.
Kotick’s new employment agreement contains a provision that will accelerate the payout of a future equity award if the company’s market capitalization increases by 15 percent through at least one “transformative transaction,” according to a regulatory filing issued Friday by Santa Monica, California-based Activision. Other awards can vest early if the share price leaps above a certain threshold.