Activision Filing Confirms Executive Benefits

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In a filing with the Securities and Exchange Commission on the details of the upcoming merger between Activision and Vivendi Games, Activision revealed certain additional financial details concerning its officers.

Activision signed a new contract with Robert Kotick (who will serve as Chief Executive Officer) on December 1. Kotick's base salary will now be $950,000 per year and may potentially receive a bonus twice that large if he meets certain performance criteria, in addition to Activision's usual executive benefits. He also received options to purchase 1.85 million shares of Activision Common stock on December 5. These options allow him to purchase shares at $26.58 per share (slightly below the merger price for Activision stock), and will vest gradually over the next five years.

Kotick will also get 1.25 million shares (that will vest over four years based on performance targets) when the merger is completed. Kotick is also well protected if he is fired without cause.

Activision has also entered into new employment agreements with Michael Griffith (who will lead Activision Publishing) to grant him additional stock, stock options and increase the rate at which his current options vest. Brian Kelley, currently of the Activision Board, will have his salary reduced, but will continue to receive impressive benefits including a very large life insurance policy.

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This page contains a single entry by Editor published on December 7, 2007 6:08 AM.

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