ATVI Activision Blizzard Inc

By Brian R. Fitzgerald 

Activision Blizzard Inc. reached a new employment agreement with longtime Chief Executive Bobby Kotick that could put him among the highest paid executives in the U.S.

In a filing Friday with the Securities and Exchange Commission, Activision Blizzard said Mr. Kotick's base salary will be lowered to $1.8 million from $2.4 million beginning Jan. 1, 2017.

The CEO, however, stands to reap as much as $56.3 million in Activision Blizzard shares over three years depending on whether the company meets particular earnings targets and other objectives, according to the filing.

The target value of compensation from shares under the agreement is $22.5 million, the company said. Mr. Kotick is also eligible for annual performance-based bonuses.

The top paid chief last year was Dara Khosrowshahi of Expedia Inc., who received compensation of $94.6 million, largely from stock options, according to a Wall Street Journal analysis of data provided by MyLogIQ LLC, a securities-filing data service.

Activision Blizzard, the biggest videogame publisher in the U.S. by market value, said it entered into the agreement with Mr. Kotick on Nov. 22.

Mr. Kotick has been at the helm of Activision for more than 25 years, having seen the company through a 2009 acquisition by Vivendi SA, which merged the company with its own games division to create Activision Blizzard.

Vivendi sold its position in the publisher in 2013.

Activision Blizzard has expanded under Mr. Kotick since separating from Vivendi. Earlier this year, the company closed a $5.9 billion acquisition of "Candy Crush Saga" maker King Digital Entertainment PLC, instantly becoming a chief player in the hot new arena of gaming via apps on mobile devices.

Activision Blizzard, which makes the popular franchise "Call of Duty," recently scored a new hit with the team-based shooter "Overwatch." Activision Blizzard plans to build a professional league around the game, pushing deeper into the burgeoning e-sports industry.

Earlier in November, Activision Blizzard said its third-quarter revenue rose 58% from a year ago to $1.57 billion. Net income climbed 56% to $199 million and the company raised its full-year outlook despite projecting weaker sales from its latest "Call of Duty" game this holiday season compared with a year ago.

Write to Brian R. Fitzgerald at brian-r.fitzgerald@wsj.com

(END) Dow Jones Newswires

November 26, 2016 05:06 ET (10:06 GMT)

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