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Activision Blizzard CEO Bobby Kotick has announced he’s to take a substantial pay cut as the company attempts to make significant changes following their ongoing sexual harassment lawsuit.
In an open letter to investors published today, Kotick outlined five major steps the company intends to make to improve company culture. These include the launching of a new company wide zero-tolerance harassment policy. The publisher also pledges to increase the number of women and non-binary employees by 50%.
The letter also claims the company will invest $250 million USD to “accelerate opportunities for diverse talent” and an additional $250 million over the next ten years on “initiatives that foster expanded opportunities in gaming and technology for under-represented communities.”
Other pledges include the waiving of required arbitration of sexual harassment and discrimination claims and continuing to increase visibility on pay equity. The final promise claims the company will provide regular progress updates on all of these changes, with more details to come in the future.
In the meantime, Kotick says that “I want to ensure that every available resource is being used in the service of becoming the industry leader in workplace excellence. Accordingly, I have asked our Board of Directors to reduce my total compensation until the Board has determined that we have achieved the transformational gender-related goals and other commitments described above.”
“Specifically, I have asked the Board to reduce my pay to the lowest amount California law will allow for people earning a salary, which this year is $62,500.” He clarifies: “This is a reduction in my overall compensation, not just my salary. I am asking not to receive any bonuses or be granted any equity during this time.”
A previous statement from Kotick back in August was heavily criticised by the ABK Workers Alliance, a union of former and current employees of Activision Blizzard formed in the wake of the allegations.
