(Heartland Newsfeed) — Two notable companies in the gaming industry are included in a report citing their chief executives are overpaid, according to non-profit advocacy group As You Sow
. These findings were recently published in their newest edition of their “most overpaid CEOs
Included in the report were Activision CEO Bobby Kotick and Electronic Arts CEO Andrew Wilson, a report which claims to promote corporate responsibility. The not-for-profit organization bases their findings from estimated annual earnings, taking into consideration shareholder returns.
Kotick appears on the list at #45 with an annual compensation package of $28 million. AYS estimated Kotick is overpaid by nearly $13 million. Wilson barely made the list at #98, earning annual compensation of $35 million; AYS estimates overpayment of nearly $19 million.
The report utilizes the basis of a 300-to-1 ratio, while the median ratio between CEO salary and median worker salary is 142-to-1. Based on comparisons, Activision’s ratio was 301-to-1 and EA’s ratio is 371-to-1. The report was released shortly after both companies revealed results from the final fiscal quarter of 2018.
Activision made headlines revealing record profits while laying off 8 percent of their workforce
, according to a Gamespot report. Meanwhile, EA cited they survived a “difficult quarter” as a result of games like Battlefield 5
under-performing set expectations. However, their fortunes may be turning around as a result of Apex Legends
surprise-launched to a huge reception and following.
The AFL-CIO labor organization also recently wrote an open letter to the gaming industry
encouraging unionization, citing working conditions at high-profile game developers like Rockstar Games, Activision’s recent mass layoffs and explicitly mentioned both Kotick and Wilson in their letter.