After issuing what he later called a “tone deaf” response to a recent sexual harassment lawsuit, Activision Blizzard CEO Bobby Kotick laid out a more robust response early Thursday and asked that his total compensation be reduced to $62,500, the lowest amount allowed for someone earning a salary under California law.
“I want to ensure that every available resource is being used in the service of becoming the industry leader in workplace excellence,” he said in a note to staff. “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…To be clear, 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.”
Kotick recently won a shareholder fight regarding his salary with the passage of a Say-on-Pay proposal. His 2020 pay package hit more than $150 million as the company laid off employees. Since 2007, he has received $461 million in compensation.
Kotick also announced a number of changes at the company, including a “new zero-tolerance harassment policy” and doing away with forced arbitration of sexual harassment and discrimination claims. The company also will increase the percentage of women and nonbinary people in its workforce by 50%, he said, and will invest $250 million to accelerate opportunities for diverse talent.
In July, Activision was sued by the California Department of Fair Employment and Housing following a two-year investigation, which alleged the company fostered a “frat-boy” culture that led to widespread gender-based discrimination and harassment, and named several high-level executives. The company also has been the subject of multiple federal investigations from the U.S. Securities and Exchange Commission and the Equal Employment Opportunity Commission.
The company settled the EEOC investigation for $18 million.
More must-read business news and analysis from Fortune:
- The Impact 20
- Hong Kong’s COVID policies are forcing big banks to consider shifting resources away from the city
- Hyperinflation: Why Jack Dorsey is worried
- Lucid Motor’s Air EV finally hits the roads with a range that blows Tesla away
- Chewy CEO Sumit Singh on the pet boom, the pandemic, and moving from puppyhood to profitability
Subscribe to Fortune Daily to get essential business stories straight to your inbox each morning.
