Activision welcomes its new CFO with $15 million after telling Blizzard to cut costs

The major publisher clearly has money to spend on staff

[Sciurus_vulgaris]

Why on Earth do executives get paid so much and get such ridiculous bonuses? Executives even get severance pay when they are fired.

[blacktiger]

that's because that's what the contract says.
It starts like this example for Satya Nadella, Microsoft CEO
He gets this much total, but half of it will be stocks, the stocks will be paid consecutively as guaranttee Microsoft to go higher, meaning he gets like 50 million plus another 20 million worth of stocks if he makes microsoft more revenue which he is, plus and this and that. In the long run they focus is to get Satya Nadella part of Microsoft, even when he gets fired no problem, be a advisor.

That's the kind of position they gave him. It's not a job, it's a position

[Sciurus_vulgaris]

Its still strange that executives (like Dice's former CFO) get paid bonuses after they cause loses in revenue and sales, brand damage and negative PR.

[UltraNova]

@Sciurus

"Part of the game"

[blacktiger]

It's like a chicken and egg game, everyone is doing it. You know how hard is to get people in board. Before Satya Nadella, Sundar Pichai was the hottest ceo and still is, Google had to pay so much to stay away Microsoft and Apple. This is the game they play but yeah, developers gets peanuts.

[Scar-]

Meanwhile the developers and testers make peanuts. Even the high level devs don't make anywhere close to this much its just stupid how this industry is structured.

[DarXyde]

It's far from just this industry, my friend.

There's really no reason for these executives to make so much while employees who are creating the products are far more worried about their finances. Sure, most of their pay is in stocks, but (a) they still usually clear about $1M in base salary and (b) there's no reason why they can't split executive stock offers and share with employees. Americans could live good lives where they're not struggling so much, but I guess it's more important to give executives more than they need in 2 lifetimes.

Honestly, I'm not even saying that you can't pay executives more, but that's a pretty serious gap.

[GameStallion]

Yeah. It’s better when companies are structured as a profit share.

[PoSTedUP]

no reason for someone who has worked harder and qualifies to generate millions and billions of dollars to get paid accordingly? the reason programmers and testers dont make what a ceo or cfo makes, as talented as they are, is because 1) they dont qualify to generate that much money, and they dont 2) have not chosen that career path 3) are easily replaceable in more cases than not. they are the laborers of the tech industry and that is their role. why dont the people who put the parts together make as much as programmers or ceos? sports players make millions because they generate that money accordingly and not everyone can play on that level and do what they do. they worked harder than others to get there and are qualified, so they get a contract. sometimes they mess up or get injured etc bc shit happens. but they are issued that contract bc the owners have trust and faith in them as they are qualified. if they dont improve they are done at the end of their contract and will be signed to a new one etc. or in some cases get sent back to the minors. this is capitalism not socialism. i dont make 10 million a year because i didnt chose that career path or work hard enough to. i dont get paid what my boss gets paid because i did not work hard, put in the time and dedication to build a business etc. i didnt sign up for my job knowing what im going to make to b**** to my boss that i want a him to make less of what he earned or to get a bigger piece of the pie of something i didnt build. the real bs is in other countries where doctors and higher professions work harder than everyone else and dont make significantly more than the average citizen.

[spwittbold]

Because everything that happens in the company is ultimately their responsibility.

[opc]

except for when they get fired and then get a bonus...

[LightofDarkness]

This is often the reasoning/excuse, but the reality speaks to a very different reason. These people are handed golden parachutes when a company dives or goes in to free-fall, and they still get another gig steering some other company astray for the same money or more. It's very much a case of being in the big boys club: once you're in, you're in. You need not be held accountable for your screw ups. The employees and shareholders will bear the impact instead, while you receive a bonus, severance and another cushy gig elsewhere.

The thing is, these people are the new lords. The new aristocracy. They only get away with this because no one has the balls to tell them "no".

[Godmars290]

Suppose to be their responsibility. In reality, they can look out for themselves and only themselves.

[TiredandRetired]

According to Bloomberg: "Dennis Durkin joined Microsoft in 1999 and spent his first seven years in Microsoft corporate development. He managed a team that was responsible for helping shape acquisition and investment strategy for Microsoft's Information Worker, Business Solutions, Windows and Home and Entertainment business units. From 2001 to 2003, he was headquartered in London focusing on European opportunities at Microsoft. He worked on a variety of acquisitions and partnerships in areas including games, Microsoft Office, unified communications, security, digital media, Windows Client, Microsoft TV and cable and services.

He served as Corporate Vice President of Microsoft Corporation and also as Chief Operating Officer and Chief Financial Officer of its Interactive Entertainment Business. He was responsible for all financial planning and analysis relating to the Xbox 360 console, Kinect, Xbox LIVE, accessories, first- and third-party games software, Mediaroom and Zune."

He does have experience, love or hate Microsoft. (That Zune though, lol!)

Even with all of his success though, it still is hard to fathom one guy making more money than most of all of his employees combined. The ones who will be doing the hard labor and love of game making. Game directors make huge decisions and risks too, but they don't get compensated anything like the corporate board. Damn shame.

[Smokehouse]

It’s because the labor liberals are dead in America. The modern progressive left are for the rich elites now. They care more about superficial platitudes than the working class. Identity politics and other useless garbage smokescreens.

It’s everywhere, do the left bitch about the Amazon work conditions? About how employees are pissing in bottles while Bezos becomes the richest man in the world? No, he donated to the Democratic Party so it’s ok. Zuckerberg and Facebook? Uber? Google? The modern left is an absolute joke and the balance has been ruined. They don’t care when the power is theres.

[Ceaser9857361]

Damn! Tim Cook recently got a pay check hike and its 15 million.

[OpenGL]

Capitalism

[2pacalypsenow]

Because the job requires a lot of knowledge and are in high demand.

Cant just pickup some random guy of the streets and ask him to be the CFO of a multi billion dollar company.

[mav805]

It's incredible (and sad) how little people know about business.

Number 1- who cares how much this guy its paid? What is it to you? If the other employees are worth so much, then certainly they can go elsewhere and make more money right? Even if Activision decided to pay their CFO a fraction of this salary, say 500,000, Activision has 4,000 employees and that would result in less than $3,500 more per employee... in addition to likely being more than they're worth (according to the market), it's hardly enough to make any change in one's lifestyle.

Second- the reason 'executives get paid so much' is simple, it's because the owners of the company (read shareholders) and those entrusted to make these decisions by the owners have decided that the executive is worth the money. Sometimes they're wrong. If you don't agree with the board and you're an owner, sell your shares. See how simple things are?

Edit- also, those in executive positions like a CFO have much higher degrees of responsibility and liability than a typical employee. They also work constantly, so the argument that they aren't doing 'the real work' is an empty argument. There's much more to making a product than what you see as a consumer.

[Godmars290]

Because they're in charge.

*drops mike*

[Godmars290]

Edit:
Suppose to be "Fox running the hen house" kind of statement.

[Profchaos]

The rationale that they give is it costs money to attract the best in the business the reality is that isn't always the case and far to often it's just exorbadent and attracts execs that have no interest in the company or the product or even the customers.

Case in point this type of move

[beulahland]

If that means more (good) games, what's the problem? It's a private company, they pay what they want for whoever they want. Anything Activision related now is a reason to scream "WITCH! WITCH!"
Chances are he won't do any miracles, though.

[ravinash]

The thing we see over and over is these companies paying loads of money for these people who come in, and regardless of how well they do... or badly... still get paid these stupid amounts.
I've seen companies driven into the ground by these people, and then they walk away with their pockets filled with cash when everyone else is now out looking for new jobs trying to pay their mortgage.

Often it's the same people going round in a small circuit from company to company collecting their pay and then moving onto the next one.

Bear in mind my wife used to work in a head hunters company which role is to basically use their contacts to keep finding these roles for these people.
It's very hard for anyone new to get in because it really is a case of who you know rather than what you know.

[Kabaneri]

The AAA industry is crashing right before our eyes.

[Xb1ps4]

RIGHT... instead of putting in that kind of money towards games and the ppl that actually make them they rather pay a suit and tie millions just to sit in front of a computer and figure how they can fuck over the little guys that make it happen.

[Godmars290]

Not just that little guy, but the one who buys it as well.

[AnnaDea]

no cash from me anymore activision....

[sander9702]

"Corporate, corporate never changes..."

[Profchaos]

It's not always the case just ea and Activision take two are going alright they have the sense to give developers free reign with time and budgets rockstar took 8 years for rdr2 for example

[-volt-]

Unless you started and own your own company there is no job on earth that justifies paying executives excessive salaries.

[Xb1ps4]

I would love to see his job description and compare it to the workers that imo actually work! I’m out of here shit pisses me off.

[2pacalypsenow]

You think CFO's don't work? My dad is a CFO and trust me, they work...

[BigTrain]

@2pac

It's not so much a question of whether they work but more so if what they do warrants 15 million. Especially when average Joe makes 48000 annually. The gap is disturbing.

[PoSTedUP]

ever meet an actuary or someone going to school for actuary science? they are on a whole other level dude. just the work they do to get their degree is insane. makes my physics/chemical engineer friend look like a middle-schooler. CFO can be responsible for a company making extraordinary gains. think every company that has done well and is making hundreds of millions, or billions, the CFO has played a huge role in that. thats what warrants his pay. not only do they work their ass off getting their degree, they work their ass of up the corporate ladder they dont just become a CFO overnight.

[Godmars290]

@PoSTedUP:
But then there's the example of companies tanking, likely from things done by the CFO, and when that company goes under the same CFO takes what's left to the detriment of those under them. Have in fact engineered things to turn out that way.

This specific case is about Activision being in trouble, repeatedly cutting corners with their products and now losing a major asset, and handing over money that could have been used to fix issues to someone who has yet to do anything.

[PoSTedUP]

the CFO doesnt take whats left he gets paid a salary and has a contract. if he takes anything that would be fraudulent. and yes CFOs make mistakes and dont always succeed in their projections.

the 15 mill (11.5 only if he hits performance targets) is to get him to stay, since he was activision-blizzards CFO for 5 years. he was thinking about jumping ship supposedly. they apparently have confidence in this guy and know what he can do. so its not like he hasn't done anything yet. they need him to turn things around. and i dont blame them they are desperate. 15 mill else where isnt going to do squat in the light of turning a big company around, but they can give it to someone who they know has the ability to. and what better incentive than in stocks tied to a performance target! he doesnt get 11.5 mill unless he does a good job.

if my business selling bread took a hit, i cant sell it and people arent buying it; should i spend 80k and buy more bread, split 80k between my cashiers, or spend it on someone who knows how to sell the bread and save my business and making me more money...?

[Godmars290]

How does even that excuse "excessive" salaries?

[Xb1ps4]

This is disgusting.. it’s always the people that don’t do shit that get paid so damn well, while the ones that actually work get the crumbs..

Just like my damn job.. got a gm that gets paid six figures with another six figure bonus... that’s not all he gets the ass hole came in knowing nothing about our field of work, nothing at all and gets a company vehicle company gas and to top it all off they pay his fvcking rent cause he moved from another state..

Just disgusting

[2pacalypsenow]

"This is disgusting.. it’s always the people that don’t do shit that get paid so damn well"

Do you know what a CFO is, and what they do?

[Xb1ps4]

Yea a chief financial officer..

In other words a glorified finance guy.. I’m sure they work very hard... so hard that this guy deserves millions over the workers that perform the jobs that actually bring in the money to afford a cfo salary like this one.

[2pacalypsenow]

Not saying he deserves 13 million, but handling a billion dollar companies fiances and answering to shareholders is no easy task.

Otherwise everyone would do it.

[PoSTedUP]

go look into becoming an actuary scientist then get back to me. not only that but the fact that they can, and a lot of the times do, make the companies filthy rich from what they know and what they do. 15million is an investment in this guy to get him to potentially make billions of dollars grow. the laborers are easily replaceable, this guy not so much.

[Xb1ps4]

I’m sure it’s not easy to answere questions... but who’s really making the company billions of dollars? In this case, is it not the guys making the games that ppl are buying?! How did the company make its revenue to afford that ridiculous salary? All I’m saying is share the wealth, distribute that money better than that.

What’s a cfo with that kind of salary to a company with out the workers that make the product?

Look at postedup response... “laborers are easily replaceable” yea... let those laborers go on strike for 2 months good luck replacing them soon enough before the stocks crash and if the cfo protect the investors through that then maybe he or she is worth all that money.

[Inzo]

No wonder their investors want an investigation into fraud.

[IMissJimRyan]

Always amuse me when people get surpised by capitalism and neoliberalism.

[Dragonscale]

Ok then name a better system.

[IMissJimRyan]

You can combine what's is good in capitalism with what's good in social protection. Like escandinavian countries.

But my point is the surprise of some people about neoliberalism that make modern American capitalism.

[ShadowWolf712]

Ahh, more people commenting on things they don't understand.

That said, Activision's got a lot of funk to it. Their investors want a fraud investigation for a reason.

[CrimsonWing69]

And yet game developers need micro transactions to keep afloat...

[v_eno_m]

https://imgur.com/gallery/4...

[AdmGenAladeen]

I haven't given these f***s a dime in 7 years so congrats to the idiots who support this dumpster fire of a company. Give yourselves a pat on the back for paying part of that 15 million.

[Hroach616]

I know they have CoD and a few other heavy hitters. But HOW is Activision still so big? I personally just looked up their games to see if I wasn’t thinking of something but no. I haven’t bought a game they published since True Crime back in the day. Excluding the first Black Ops.
Looking at their catalog I’m surprised they are doing as well as they are. Besides CoD and Destiny(before the bungee split) I wouldn’t think most of these games are massive sellers for them. Microtransactions in a couple big games go a long way I guess.

[ramiuk1]

boycott them then

[JLynn943]

Modern capitalism

[CaptainObvious878]

I'd still rather this than socialism.

[TheGamez100]

This is one if the reasons why the games industry sucks. These execs, corporates and whatever that know nothing about video games make a ton of money yet the real blood sweat and tears done by devs get paid too little. These great studios need to go indie...but of course its not that simple.

[aarogree]

Well of course they need to cut costs. How else do you expect Activision to attract people to work for the company. Those third jaccuzzis won't buy themselves!

[fuzzyinthepants]

the pay gap from CEO to the lowest position should only no more than 20 fold.

[Germaximus]

lol wow

[SlagWolf]

Oh Activision

[AK91]

Blizzard you need to cut ties with Activision NOW.

[zodiac909]

All I read was, "Activision welcomes new snake, and tell's Blizzard to degrade the quality of their games."

[franwex]

Can we not hate on people’s salaries? CFOs work a lot.