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News

  Activision's Kotick Earned $15 Million In 2008
by Leigh Alexander
14 comments
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August 10, 2009
 
Activision's Kotick Earned $15 Million In 2008
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Activision Blizzard chairman and CEO Bobby Kotick recently touted the publisher's four consecutive quarters of beating expectations under his watch, and a new profile of the exec in business mag Forbes reveals he earned nearly $15 million in compensation for his performance in 2008.

The precise amount is reportedly $14,950,102.00, just $899,560 of which is his actual salary. Millions in options and incentives plus a $5 million bonus combines to comprise the total year's earnings.

The 46 year-old Kotick has been a director at Activision since 1991, according to the profile, and served as chairman and CEO since February of that year.

He is also on the Board of Trustees for The Center for Early Education, chairs the Trustees at the Los Angeles County Museum of Art and has a seat on the Board at the Tony Hawk Foundation.

The exec is primarily known to the gaming audience for his occasionally controversial frankness on Activision Blizzard's profit goals, and his aggressive stance toward the company's rivals and the market in general.

He's challenged Warner Music CEO Edgar Bronfman on the relationship of rhythm games to the music industry, suggesting it's the games biz that deserves further compensation, and this year, he publicly threatened to withdraw support for the PlayStation 3 by 2011 without a price cut from Sony to drive userbase expansion.

Most recently, Kotick's jest on the company's financial results call to investors that "if it was left to me, I would raise [software] prices even further" was widely criticized in the games press.
 
   
 
Comments

Lo Pan
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Bobby has done very well for ATVI and has been compensated according. I am willing to bet his net worth is over 75 million. One concern is how does Bobby manage his line troops. Someone this successful should pass on his success in some form to his people - who continue to assure his success. Yes his people bet paid, but when a gaming CEO make this much money, some goodwill gesture(s) should trickle down to the team. From my sources and my experience...this never happens. Bobby, your people (not just your exec team) have help you to achieve incredible wealth and fame, pass on this gratitude...even a 'great job' email would be appreciated...

Jerome Russ
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@Rebecca,
Wow. When I opened this article I was fully prepared for some CEO hate. It was nice to see your comment, and I completely agree with you!

He has done a great job for Activision, and his paycheck should reflect that. I just hope he follows through on your suggestion of sharing the gratitude because without those who work for him, he wouldn't have been able to do as well as he did.

Tim Carter
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In the film world, core creators such as Steven Spielberg, receive comparable compensation. Do core creators receive said compensation in the game industry? Or must they first become a studio head - i.e. a company administrator - to get levels of compensation on par with those received in other creative industries.

Tomer Chasid
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do people think that its because of this guy that ps3 is going to get a price cut?! I don't really understand what the purpose of that was. Everyone knows that the price cut was coming, but strategically I'm confused as to what he's trying to gain... maybe he just wanted to talk loud to show that he's got influence, which I'm sure he does. But I don't get it... I am skeptical of any CEO who makes statements that "advocate for the consumer" in such ways. But I guess $15 million renders my opinion irrelevant.

Mathieu Marquis Bolduc
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Blizzard and Infinity Ward's development teams have done way more for ATVI than Kotick. I wish *they* would get that kind of compensation. For ATVI`s sake I hope he remember how Inifinity Ward was created in the first place...

Christopher Shell
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@Tim Carter:

You should direct that question towards professional software development in general, not just the subset that focuses on games.

Joseph Amper
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Maybe they got bonuses?

Lo Pan
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IW got paid, but I am sure they want (and deserve more). Bobby came from the rank and file in ATVI so he should know the value of quality people working in production. Activision has very high expectations of its line staff - I worked there. In my time there I never had any contact with Bobby (and I was working on a major title), no visit to the department, no congratulatory emails on launches - strong earnings, etc. It may be the ATVI culture not to do/expect this, but you would think Bobby would draw from his time as a line Producer and spread a little love to his minions.

Tim Carter
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The game industry is not a software development industry. It is an entertainment industry. True it uses software, but that is merely a means to an end.

Christopher Shell
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Tim, I didn't mean the game industry as a whole is a subset of the software development. I meant game DEVELOPMENT is a subset of software DEVELOPMENT. Regardless of the industry, software developers commonly fall under the context of "core creators" that you brought up. And in this case, I believe its quite relevant to direct your question to such a broader perspective.

Christopher Corbett
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Interesting points all around. Company as large as Activision I'm not surprised studios may typically not hear from the CEO (even indirectly). At higher level executive positions there tends to be a lot of things that happen to the benefit (and yes, detriment) of frontline workers without becoming frontline knowledge. Someone has to steer the entire ship, even if some of the parts (Infinity Ward, etc.) are pulling more than their share. Having said all that I think it's interesting to consider "core" content creators in other industries and how their similarly mass market products reap them direct benefits...often in spite of poor reviews (Michael Bay?). Ultimately though, I think it speaks more to the lack of similarity between the industries than anything else. There needs to be more self-definition in the games industry and less comparison to the film industry. Games are an evolution of movies, as such any aspects that were similar may/may not apply as the industry moves forward. To look at the film industry is to look backwards. Who needs $15 million/year? Is money the only reward we seek? How's about spiritual enlightenment...via health packs and imaginary bullets!

John Mawhorter
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The whole "we don't need money because we get to work in a great, "fun" industry" thing is what holds down everyone's salaries. Hollywood is heavily unionized from the directors down to the setbuilders, another reason they get paid so much.

Dave Fried
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Blizzard folks get PLENTY compensated. When I worked there the joke was that whenever bonuses would come around, the higher-ups would get new cars. These days, the joke is that they buy mansions and islands. =p

Christopher Corbett
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@John M., I agree to stick with the "we don't need money because we get to work in a great, "fun" industry" does bring with it some concept of self-defeat at the monetary level. However, I do know many, many people that make what we believe we should make and are not happy with their work; they are in fact completely miserable. They would gladly sacrifice some $amount/year to love their work and maintain passion throughout their daily lives rather than having to turn it on/off.

This isn't to say game developers should sell themselves short, but perhaps develop better business acumen when it comes time to discuss salary or obtain new positions? Developers should be more well rounded, as for the time being there is no union to stand up on their behalf. One must work within the system while working to change it? Just some thoughts.

Ultimately I would like to know where the money is going, and find a way to have some influence over it toward better distribution over the talent responsible for its influx.


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