Activision Blizzard ends forced arbitration for harassment and discrimination claims
Igor Bonifacic
·Contributing Writer
Thu, October 28, 2021,
Following months of pressure from employees and workers, Activision Blizzard says it will no longer employ forced arbitration in sexual harassment and discrimination claims. CEO Bobby Kotick announced the policy change in a letter to employees the company shared on Thursday. Kotick said the publisher will also implement a new company-wide zero-tolerance harassment policy. In the future, any employee who is found to have violated the rule will be fired immediately. Additionally, they’ll forfeit any future compensation, including equity awards.
“Our goal is to have the strictest harassment and non-retaliation policies of any employer, and we will continue to examine and tighten our standards to achieve this goal everywhere we do business,” Kotick said.
The executive outlined three other steps Activision Blizzard will take to create a safer and more diverse workplace. Over the next 10 years, it will invest $250 million in programs that create opportunities in tech and gaming for under-represented communities. Additionally, the company to plans to hire more women and non-binary people. According to Kotick, approximately 23 percent of all employees at Activision Blizzard identify as part of those groups. Its goal is to increase that number by 50 percent to more than one-third across the entire company within the next five years. Kotick also promised the company will share annual reports on progress it makes toward pay equity.
Separately, the executive said he has asked Activision Blizzard’s board of directors to reduce his total compensation to $62,500 per year until it feels like he has met the diversity and safety goals outlined above.
Today’s announcement sees Kotick and Activision Blizzard meeting many of the demands employees put before the company when they began protesting its actions in the wake of California’s sexual harassment lawsuit. When employees first staged a walkout in July, they demanded the end of forced arbitration, greater pay transparency and new hiring policies designed to increase representation across the company. “This is a great start, and there’s still work to do,” said Jessica Gonzalez, one of the employees involved with the A Better ABK advocacy group. “We can lead the charge as an industry standard. Victories and still pushing.”
Activision CEO Bobby Kotick cuts his salary to $62,500, California’s state minimum
Chris Morris
Thu, October 28, 2021
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.
Chris Morris
Thu, October 28, 2021
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.
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