Activision Blizzard Shareholders Demand Policy Changes Amid Sexual Harassment Controversy

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It’s been a rough couple of weeks for Activision Blizzard in the wake of the sexual harassment and discrimination lawsuit filed by California’s DFEH. Since news of the lawsuit came out, players have been boycotting and leaving the company’s games in droves. Shareholders who aren’t happy with how the company’s executives responded to the mess have also filed their own class action suit accusing leaders of fraud for withholding information about the DFEH’s investigations and the ensuing lawsuit.

The SOC Investment Group (formerly CtW Investment Group), also voiced their disappointment at how Activision Blizzard’s leadership, specifically Bobby Kotick, is handling the situation.

“The changes Mr. Kotick has announced do not go nearly far enough to address the deep and widespread issues with equity, inclusion, and human capital management at the company,” said SOC Executive Director Dieter Waizenegger. “No changes have been announced or proposed that would in any way alter the current process for filling vacancies either to the board of directors or to senior management.”

Weizenegger also noted that there are currently no plans to narrow the pay gap between rank and file employees and executives or recover compensation from executives who have been found to engage in or allowed abusive practices within the company.

Waizenegger also criticized Wilmer Hale, the law firm that Kotick chose to handle the internal investigation, citing the firm and the lead investigator’s lack of experience. “The announced review by Wilmer Hale is deficient in a number of ways,” he said. “This firm has a sterling reputation as a defender of the wealthy and connected, but it has no track record of uncovering wrongdoing, the lead investigator does not have in-depth experience investigating workplace harassment and abuse, and the scope of the investigation fails to address the full range of equity issues Mr. Kotick acknowledges.”

The SOC is also calling on the company’s leaders to carry out a company-wide Equity Review similar to those done by Facebook, Starbucks, and Airbnb, claw back bonuses from abusive executives, make future bonuses contingent on clearly set goals and milestones.

The investment group also demands that Activision Blizzard “increase board diversity and equity by adding a woman director — preferably one with a history of advocacy for marginalized people and communities — by the end of 2021, committing to gender-balance on the board by 2025, and reserving at least one board seat for a nominee selected by current employees as their representative.”

“At this critical juncture in Activision Blizzard’s history, we urge you and the board to push beyond the inadequate response from management and take the steps necessary to protect our investment from the financial, operational, and reputational risks that have come to the fore over the past week,” concluded Waizenegger.

The full letter from Waizenegger and the SOC Investment Group can be found here.