The activist shareholder organization is owned by SOC Investment Group. wrote a letter Activision urged Blizzard shareholders not to re-elect six board members, including CEO Bobby Kotick.
Activision Blizzard’s annual general meeting is scheduled for June 21. The current board of directors is up for re-election, which has prompted SOC Investment Group to write an open letter urging shareholders not to re-elect six out of ten boards. Member. These are Bobby Kotick, Brian Kelly, Robert Morgado, Robert Corti, Barry Meyer and Peter Nolan.
The reasoning given by the SOC is as follows: “Each of these directors either failed to recognize that Activision Blizzard has maintained unsafe workplaces for years that have consistently and repeatedly demonstrated sexual harassment, sexual harassment, and gender discrimination.” are, or more appropriately address the company’s “frat house.” The culture was once publicly disclosed by the California Department of Fair Employment and Housing (“DFEH”) in its pending lawsuit, which was filed in July 2021. was filed.
SOC Investment Group urges shareholders #activation blizzard To vote against six directors who failed to address the company’s sexual harassment crisis. #CorpGov #end sexual harassment #ToneDeafAtTheTop
— SOC Investment Group (@SOCInvGrp) 27 May 2022
The letter then outlines some of the shortcomings of the current Activision Blizzard board in two sections titled “Inadequate response to the sexual harassment crisis” and “Profoundly flawed governance.”
In the past, the SOC has deeply criticized the Activision Blizzard leadership’s response to the allegations outlined in DFEH’s lawsuit, saying that the board’s “inaction” is “unforgivable”, given the “seriousness of Activision’s situation.” They are of the view that the Board has not taken actionable steps to improve the position of the Company.
In a later section, SOC Investment Group outlines the failures of Activision Blizzard’s corporate structure. Activision’s board includes “an unusually high number of extremely long-standing executives” including Kotick (since 1991), Kelly (1995) and Morgado (1997). In addition, they criticize the concentration of authority in Activision Blizzard, using Morgado’s multiple responsibilities as an example.
In the final leg of the letter, the SOC once again asks the above six directors to vote. He believes this is the bare minimum to begin the process of fixing the work culture at Activision Blizzard.
While it is highly unlikely that the board will not be re-elected, SOC Investment Group’s efforts have borne fruit in the past. He led an effort by shareholders to stop a pay package that would see executive pay increases at Electronic Arts in 2020 and was nearly successful in getting shareholders to decline an executive pay package at Activision Blizzard last year.
In other gaming news, Sega will reveal one of their mystery projects in an upcoming broadcast.
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