Bobby Kotick, the chief executive of Activision Blizzard Inc.,
could walk away with as much as $520 million after Microsoft Corp completes its planned purchase of the videogame company!
In a securities filing, Activision said Mr. Kotick would receive $14.4 million in severance if he is terminated or quits within a year of a change of control at the company.
Mr. Kotick owns 4.3 million shares and has the right to acquire another 2.2 million—potentially worth just over $500 million combined at the $95-a-share deal price.
Friday’s disclosure, in Activision’s annual statement, reflects the accounting of Mr. Kotick’s stake in the company and potential severance under existing agreements.
*Microsoft Chart on Activation’s investments
Activision said that its shareholders approved the merger.
Mr. Kotick, Activision’s CEO since 1991, makes him one of the longest-serving heads of a publicly traded tech company.
- Mr. Kotick is expected to step down from Activision when the deal closes, WSJ reported in January.
A spokeswoman for Activision Blizzard said that Mr. Kotick purchased $50 million worth of Activision stock in 2013 and that he, along with all shareholders, got the benefit of a 500% increase in value due to the company’s “extraordinary performance” under his leadership over the past eight years. All equity he has earned is based on performance, she said.
Activision Blizzard, known for its Call of Duty, World of Warcraft and Candy Crush franchises, has over 10,000 employees.
Mr. Kotick has been roiled in controversy, as state and federal regulators have accused Activision of mishandling employee sexual-harassment cases and gender-pay disparity.