Activision Blizzard Shareholders to Vote on Microsoft Sale and Possible Big Payouts for Bobby Kotick and Others

Activision Blizzard shareholders are holding an important vote tomorrow on whether they believe the company should be sold to Microsoft. The vote is about the merger, but it is also about where things will go when it comes to Activision Blizzard's future with regards to workplace culture,  lawsuits, harassment allegations, and whether or not the company can turn itself around under current CEO Bobby Kotick. 

Rumors started flying as soon as the Microsoft deal was announced about Kotick’s potential departure from the new company once approved. This voting session tomorrow will also let shareholders potentially approve the possibility of a big compensation package for Kotick and other top executives six months after the merger is approved should they leave. 

According to Stephen Totilo of Axios, the merger vote is binding but the vote on potential exit compensation is nonbinding. However, there’s a lot of money to potentially be made on exit, should the possibility of these deals be approved. Kotick is looking at a possible $22 million payment by summer if Activision Blizzard determines that the company has turned itself around enough based on outlined goals from October.

These compensation packages are generally known as “golden parachutes” and are usually reserved for executives at the highest levels of a company in order to get them out and start fresh for one reason or another. These packages are often arranged after a major company sale or acquisition but can also happen after some kind of scandal or other failure at the top that warrants turning a new page. Yet their high sums, especially when applied to get someone out that was at best, ineffective for a reason and at worst, toxic, leads to discussion about how these acts may effectively be rewarded.

These votes will take place tomorrow and must be reported publicly by May 4th. Even if the shareholders do approve of the sale to Microsoft, the deal still has several additional phases left in order to pass regulatory approval.