Activision Blizzard Shareholder Group Calling For Bobby Kotick’s Resignation
This week’s burning Wall Street Journal exposé is stirring up all kinds of trouble over at Activision Blizzard as workers stage walkouts in addition to calls for Bobby Kotick’s resignation under his own “zero tolerance” policy. Unsurprisingly, the CEO refused to step down from his post and even got support from the company’s board of directors.
According to the Washington Post, a group of shareholders have also submitted a letter to Activision Blizzard’s board of directors, calling for the termination of Kotick and the early retirement of senior members of board, Chairman Brian Kelly and Lead Independent Director Robert Morgado.
The letter reads:
“We, the undersigned, write to you as Activision Blizzard, Inc. shareholders representing $329 billion in assets under management or advisory. Our company faces an unprecedented workplace crisis of its own making. As new reporting indicates, and in contrast to past company statements, CEO Bobby Kotick was aware of many incidents of sexual harassment, sexual assault, and gender discrimination at Activision Blizzard, but failed either to ensure that the executives and managers responsible were terminated, or to recognize and address the systemic nature of the company’s hostile workplace culture. Moreover, and despite numerous government investigations, settlements, and top executives’ departures that have negatively affected both the company’s public reputation and its share price, the board has been almost entirely silent.
We, therefore, call on Mr. Kotick to resign as CEO of the company, and on the board of directors to take responsibility for failing to recognize and address what the California Department of Fair Employment and Housing has described as a “frat boy” workplace culture to flourish. In order to ensure that the board has leadership capable of leading this effort, we urge Chairman Brian Kelly and Lead Independent Director Robert J. Morgado to announce their retirement no later than December 31, 2021. The board should start a search for more qualified replacements immediately.”
The group is also calling for an independent review of the company and the board’s practices, a re-shuffling of the board to increase diversity, and the addition of an employee-nominated, non-executive Employee Director to the board of directors, in addition to a pay cut for Kotick.
“If the Board does not terminate CEO Robert Kotick, include the announced voluntary reduction in total CEO pay in his employment contract for at least five years and auto-renew it if the stated workplace goals are not met. In addition, clarify if any other executives will accept similar reductions or if the company will eschew granting bonuses for this year,” demanded the group.
Meanwhile, Activision Blizzard’s stock price continues to plummet amid the ongoing scandal and is now down nearly 16% in the past month and nearly 30% in the last six months.
