Phil Elliott
09:07 (BST)
10/12/2007
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Activision pair bag $40m
Kotick and Kelly to receive cash and shares as part of Vivendi deal
Activision executives Robert Kotick (pictured) and Brian Kelly stand to make around USD 40 million between them as a result of the deal to merge Activision with Vivendi Games, thanks to their current shareholding in the company.
According to an FT report the pair, who will continue in charge of the new company, stand to gain about USD 10 million each in change-of-control payments, as well as 363,637 shares each restricted until 2010 which have a current value of about USD 10 million.
Additionally Kotick is set to receive a potential 1.25 million shares, linked to performance over the next five years, as well as a further 1.5 million share options.
Kotick, current chairman and CEO of Activision will serve as president and CEO of the new Activision Blizzard, while Kelly will keep his current co-chairman job title.
Both men are thought to have waived additional benefits that would have been due to them as a result of the deal.
Meanwhile Vivendi has confirmed that Blizzard Entertainment will continue to enjoy a level of independence within the new company, and although it will not have the authority to make independent decisions about new products, the CEO will have the power of veto.
World of Warcraft is largely responsible for the current Vivendi subsidiary's USD 1.11 billion gross revenue and USD 517 million operating profit in the past 12 months.
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