An Activision Blizzard stakeholder group that owns 4.8 million of the company’s 779 million shares wants CEO Bobby Kotick and other executives to resign.
A Wall Street Journal report exposed Kotick for being aware of sexual misconduct allegations at the company for years but not informing the company’s board. The report resulted in a walkout by more than 110 employees on Tuesday and a call for his resignation.
The board responded to the reports, saying it remains “confident in Bobby Kotick’s leadership,” but the shareholders’ letter also asked Brian Kelly and Robert Morgado, the board’s two longest serving directors, to retire by the end of the year.
- Investment management companies Vanguard and BlackRock, which own more than 64 million and 58 million shares, respectively, did not sign the letter to the board.
- NEI Investments signed — the group had decreased its number of shares to under 100,000 in July.
Kotick released a video Tuesday morning, saying, “Anyone who doubts my conviction to be the most welcoming and inclusive workplace doesn’t really appreciate how important this is to me.”
Activision Blizzard is also being sued by shareholders for violating securities laws, is under investigation by the SEC, and is facing an unfair labor practice complaint.