CEOs of Activision and EA have made it to the list of 2019’s “Most Overpaid CEOs” according to the non-profit advocacy group, As You Sow. Andrew Wilson from Electronic Arts and Activision Blizzard’s Bobby Kotick among the likes of Walt Disney’s Bob Iger, Netflix’s Reed Hastings and many more.
As You Sow makes the list of overpaid chief executive officers by calculating their yearly earnings and shareholder returns. Bobby Kotick made it to the number 45 with annual pay of $28 million which is overpaid by $13 million according to the report. EA’s Andrew Wilson made it to the 98 spot with a yearly salary of more than $35 million with an excess of $19,673,861.
The report also lists the median ratio between company CEO to be 142:1 but in the case of Activision Blizzard and EA, it’s 301:1 and 371:1 respectively. The general median pay ratio on the As You Sow’s list is 300:1.
This report came out at a very interesting time as Activision recently made huge loads of profits by laying off hundreds of employees. On the other side, EA revealed that it’s having a bad quarter due to the low sales of Battlefield 5.
The report also says that the gap between the median worker pay and CEO pay has increased rapidly in the past decades.
If you look at the pay of top CEOs relative to workers, that ratio in the 1950s was 20 to 1, was about 30 to 1 by the late ’70s, and by the mid-1990s it was 120 to 1. When I was working in the White House that was a cause of real concern. That ratio seemed appalling to most people. Now it’s 300 to 1.
As for EA, things seem to be getting a lot better with the release of free-to-play Apex Legends which turned out to be a huge success for the company.
Apex is a free to play battle royale game which released as a surprise but the whole strategy worked out very well. Apart from that, Anthem, another game published by EA, is going through rough launch as it’s been a target of bad reviews from almost everyone. It will be interesting to see how things change in the future.
Anthem is an open-world multiplayer game developed by Bioware for PC, Xbox One and PlayStation 4.