Activision Blizzard CEO Bobby Kotick's Salary Plunged By $153 Million: Here's Why

Activision Blizzard boss Bobby Kotick, who was among the highest-paid chief executive officers in the country in 2020, became one of the lowest-paid top executives last year after taking a $153 million pay cut, according to an analysis.

Kotick was the second-highest-paid CEO in the country in 2020 after receiving $154.6 million, mostly in equity awards, a 2020 CEO pay analysis by the Wall Street Journal (WSJ) revealed.

But Activision Blizzard reported paying the 59-year-old $826,549 in 2021, according to a new WSJ report.

The reduction of Kotick's overall compensation came after he asked the board to slash his salary and passed up bonuses and equity grants amid a California Department of Fair Employment and Housing lawsuit filed in July 2021 which alleged that the video game company's female employees were subjected to rampant sexual harassment and gender discrimination.

In a letter to employees in October 2021, Kotick said that he asked the board to reduce his annual total compensation to $62,500, the lowest amount California law will allow for people earning a salary that year, “to ensure that every available resource is being used in the service of becoming the industry leader in workplace excellence.”

Kotick also asked that his compensation be kept at the minimum level allowed by law “until the Board has determined that we have achieved the transformational gender-related goals and other commitments.”

In the letter, Kotick said that Activision, which owns game franchises “Call of Duty” and “World of Warcraft,” aims to increase the percentage of women and non-binary people by 50%.

Activision also promised to increase pay equity, although the company’s analysis showed that women at the company, on average, earned slightly more than men for comparable work in 2020.

Kotick announced that he will launch a zero-tolerance harassment policy and will waive any requirement of arbitration in claims of sexual harassment and discrimination, meaning parties don’t need to opt for a private dispute resolution and can instead proceed to court.

Microsoft announced in January that it agreed to acquire Activision Blizzard in a $68.7 billion deal, The Verge reported.

A spokeswoman for Activision said the company has outperformed the market since Kotick became CEO in 1991.

“Mr. Kotick has transformed the company, reshaped the videogame industry and delivered tens of billions of dollars of value to shareholders,” she said in a statement to WSJ.