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Today, Activision Blizzard shareholders will vote on the Microsoft acquisition choosing whether the company should be sold to the tech giant. However, apart from that, the meeting will also discuss potential compensation Activision's executives might receive if they leave the company after the deal is closed.
Earlier, it was reported that Microsoft and Activision could pay the head of Activision Blizzard Bobby Kotick a "golden parachute" of $15 million in case of his departure. In addition to that, he might receive as much as $22 million in stock in July or later this year if Activision’s board notes significant improvement in the company's workplace culture.
The vote on the merger seems to be more straightforward: the board of directors has already approved it, although a group of activist investors has urged the shareholders to vote against it.
According to Axios, Glass Lewis, the firm which advises stockholders on votes, suggests that they should approve the possibility of the Microsoft deal, but it hasn't expressed a clear opinion regarding the potential payout to executives. The firm calls it a "dubious windfall" that depends on the company achieving goals in the work environment that would not exist if Kotick had "proved to be a more effective chief executive".
The results of the vote will be reported to the public within 4 business days which is May 4. Shareholders may well vote against compensation, but they are likely to approve the deal itself. However, in this case, the deal will still have to go through regulators.
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