Activision CEO makes another $18 million

Bobby Kotick continues cashing out soon-to-expire stock options, bringing one-week windfall to nearly $42 million; CFO Thomas Tippl nets 40 percent raise.

Activision's Modern Warfare 2 brought in a whopping $550 million over its first five days on sale, setting a new entertainment industry record. Over roughly the same span, Activision CEO Bobby Kotick exercised millions of stock options he'd been sitting on for nearly a decade, bringing in roughly $42 million (closer to $38 million after deducting the options' strike price) over just four days.

Bobby Kotick made about 1/13th what Modern Warfare 2 did in the game's first five days on shelves.

After detailing the $22.2 million first round of Kotick's stock option sales last week, Activision filed another Securities and Exchange Commission report yesterday detailing the executive's further activities. On November 13, Kotick exercised another 1.69 million stock options at a strike price of $1.03 per share and sold them for between $11.60 and $11.70 per share. Kotick brought in roughly $19.67 million from the sales, clearing $17.93 million after deducting the $1.74 million needed to exercise the options in the first place. Both rounds of sales came from stock options that were set to expire April 18, 2010.

According to another Activision SEC filing, Kotick's total compensation for the last nine months of 2008 was $28.9 million, including a base salary of $743,000, a bonus of $5 million, and more than $11 million in stock awards. For the entirety of 2009, Kotick's base salary will total $950,000, as the executive elected to forgo a salary increase.

One Activision employee who isn't forgoing a bump in pay is CFO Thomas Tippl. The Austrian-born executive is receiving a 40 percent bump in pay for 2009, increasing his base salary from $535,000 to $750,000. Like Kotick, Tippl gets most of his compensation from other sources. For the last nine months of 2008, Tippl's base salary was $387,731, but bonuses, stock awards, and other perks brought his total compensation to $3.23 million.

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Discussion

201 comments
TheRealUser101
TheRealUser101

With MW3, Infinity Ward announced that they will fix bugs and glitches faster! The weaponry and perks in Call of Duty: MW3 will also be more balanced and the Xbox 360 version of Call of Duty: Modern Warfare 3 will have a working party chat system. Infinity Ward has also revealed that it has revamped the entire killstreak reward system!

SiKh22
SiKh22

I hate that alien.

DotComBoris
DotComBoris

Usually when a CEO sell stock in their own company it means lean times ahead. PITY the other share holders!

Dan21278
Dan21278

Just for that I'm never buying a Activision game. P.S: lol firehawk

airsoftmanic
airsoftmanic

this guy is the single most reason why i will NEVER go to live in america. captialism just lets the rich get richer and the poor get poorer. except for the occasional poor guy to invents something awesome and becomes rich. those are the guys who actually deserve thier money.

valcrist09
valcrist09

over paid piece of crap no one deserves to make money like that.. i hate america so much freaking greed...

firehawk998
firehawk998

Bobby Kotick king of all Douchebags. Nuff said.

elwood499
elwood499

he's got blond eyebrows... ugly motherfu@#er

Sanguis_Malus
Sanguis_Malus

Unfortunately when anything sells so much there is more greed involved. Also, very unfortunately at the top end of most successful products, the persons financially benefiting the most are the most removed from the user base that made said products so successful.

Rottenwood
Rottenwood

Pretty smart move, with stock riding high off of Modern Warfare 2 and the rest of Activision's top properties starting to wilt. The company could implode soon and Kotick would be more than set for life. Apt reward for a man with the creative vision to tell his company "um, make sequels to the games people bought last year." Not that I blame him... he knows how predictable consumers are, and has capitalized accordingly. It'd be terrific if he shared a portion of that windfall with Infinity Ward, mind you. I don't even like Call of Duty much, but the games are clearly responsible for much of this man's riches.

izmickey
izmickey

[This message was deleted at the request of a moderator or administrator]

jojoforpres
jojoforpres

Tired of seeing stories about how much money this ***-**** is making? Stop buying Activision's lame played out game sequals. Done.

downloadthefile
downloadthefile

this is the guy that talks about milking franchises and pumping out as many generic games as possible. If more executives actually played video games instead of discussing them with market strategists, etc. then maybe they'd actually make good games. Take a page out of the Bioware or Bethesda book and make games with effort put into them that have some depth.

Haeravon
Haeravon

It's a shame the actual developers of these games aren't making the same kind of money. You know, the people who actually created the game and deserve their share of the proceeds that instead go to executives. Such is life, though. Skilled and creative people don't get recognition anymore, just the suit-wearing pricks who work them like dogs and push deadlines.

joksterz78
joksterz78

@im-a-roustabout lol, probably an Associates of Liberal Arts Degree! LOL!

HerbalVideogame
HerbalVideogame

Man, with a mug like that, you know what he spends his cash on...

hohohoyes
hohohoyes

That is one happy looking mofo

Erebus
Erebus

In my eyes, looking at the gaming industry, Bobby Kotick is about as despised as Jack Thompson. Hopefully Kotick's fate will be similar.

shakensparco
shakensparco

Well at least he realizes that Activision's stock won't stay this high for very long.

cjasko94
cjasko94

Then again what game isn't over hyped anymore..

cjasko94
cjasko94

MW2 was over hyped period. And this guys pic scares me.

DiabloNeonX
DiabloNeonX

Only thing worse than an a-hole is a rich a-hole.

Caml10
Caml10

I bet IW as a whole also got only a 13th of MW2's income. CEOs make me sick. This one makes my internal organs riot.

etcetcetc
etcetcetc

Good thing karma exists. I expect this man to get run over by a bus full of orphans. Sweet innocent justice.

mattisgod01
mattisgod01

Its that stupid grin, can't stand it.

Heshertonfist
Heshertonfist

Having a lot of money won't make you any less of a dumbass Bobby.

zintarr
zintarr

The ultimate proof that games should only be priced at around $20 and not the $60 they are raping us for.

shabulia
shabulia

My problem isn't that someone is making such huge amounts of money. It's that HE is making such huge amounts of money. His comments have just made me sick over the last year and I can't stand the fact that he's such a complete S.O.B. However, that's the way it works. He invested and it was a risky one at that but it paid off. It is because of him that Activision was in such a position to do so well in the first place. He invested his money when the company was nothing. That takes balls. I don't like him, but I can't fault him for doing what people who trade stock do every single day. I can only fault him for being such a jerk.

Rickiej
Rickiej

Yep, life is unfair.... Now, I hope he will retire early and let a better guy lead Activision.

KillerWabbit23
KillerWabbit23

ANybody else notice that the title is "ANOTHER 18 million"? That's disturbing.

MMORPGLoverr
MMORPGLoverr

[This message was deleted at the request of a moderator or administrator]

im-a-roustabout
im-a-roustabout

[This message was deleted at the request of a moderator or administrator]

Darkman2007
Darkman2007

oh well, at least none of that money came from me, I didnt buy the game (nor do I buy any of the CoD games) but in any case, its a bit silly to keep putting news about this guy's salary on the site, he isnt any different from other CEOs, so why arent we seeing how much money the CEOs at EA are getting? because its not that interesting after a while. I would rather read news about new games coming out.

BaLLz_ON_FiRE
BaLLz_ON_FiRE

He fat but he knows how to make money also. Mo money mo problems :(

HALO_3_R3CON
HALO_3_R3CON

[This message was deleted at the request of the original poster]

Ranemoraken
Ranemoraken

I logged in to thumbs up that comment fed_X

Fed__X
Fed__X

If you put some blue paint on his face he looks alot like Violator.

SilverBloo
SilverBloo

Bobby Kotick would have no problem destroying innovation in the industry and he would do it with a grin. You are not a customer, you are merely a sponge to be squeezed for as many dollars as possible for Activision. This guy makes EA look like Mary Poppins. I sure as hell won't buy anything from him.

ColonelX24
ColonelX24

What do these people do with this kind of money? Sure as heck not on video games. (probably all free.)

gamer082009
gamer082009

Hmm, the only rich people I don't hate is Oprah Whinfrey and video game developers/publishers. So good for you "Bobby Kotick", keep the good games comin!

johnnyjh89
johnnyjh89

Stop Posting these stories its making me jealous. I have had enough of this guy

imperial_agent
imperial_agent

well congrats Bobby. I don't see anything wrong with people making money. At least he's one CEO who isn't asking for government bailout money, and actually turned a failing company into a successful developer. so yeah I guess he deserves it, but it doesn't change the fact that he's a douche.