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

The major publisher clearly has money to spend on staff

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Sciurus_vulgaris1982d ago

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

blacktiger1982d ago

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_vulgaris1982d ago

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.

UltraNova1982d ago

@Sciurus

"Part of the game"

blacktiger1981d ago

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-1982d ago

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.

DarXyde1982d ago

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.

GameStallion1982d ago

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

PoSTedUP1982d ago (Edited 1982d ago )

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.

spwittbold1982d ago

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

opc1982d ago

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

LightofDarkness1982d ago

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".

Godmars2901982d ago

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

TiredandRetired1982d ago

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.

Smokehouse1982d ago (Edited 1982d ago )

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.

Ceaser98573611982d ago

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

2pacalypsenow1982d ago (Edited 1982d ago )

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.

mav8051982d ago (Edited 1982d ago )

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.

Godmars2901982d ago

Because they're in charge.

*drops mike*

Godmars2901982d ago

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

Profchaos1981d ago

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

+ Show (8) more repliesLast reply 1981d ago
beulahland1982d ago (Edited 1982d ago )

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.

ravinash1982d ago

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.

Kabaneri1982d ago

The AAA industry is crashing right before our eyes.

Xb1ps41982d ago

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.

Godmars2901982d ago

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

AnnaDea1982d ago

no cash from me anymore activision....