OAKLAND, Calif. (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” report.
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.