Activision to boost incentive stock pot
Share-holders to vote on adding 56 million shares to talent acquisition and retention scheme
Activision Blizzard has announced its intention to increase the maximum number of shares held under its incentive plan by 56 million in an amendment to the scheme, set to be voted on by shareholders at a meeting on June 3.
The company has warned that the current level of shares has fallen to under 20 million, and that when that number hits zero "in the near future" it will be put at a "significant competitive disadvantage" which in turn will compromise its ability to "enhance stockholder value".
The shares are used in three key areas - recruitment and retention, including the ability to attract and retain key executive, creative and technical talent; the motivation of employees to hit certain targets; and aligning the interests of employees with that of the stock-holders themselves in terms of compensation.
Additionally, the management is keen to increase the maximum aggregate value of both performance units and custom awards for any single employee in a fiscal year, bumping it up from $2 million to $6 million apiece.
It's not clear if any of this is related to the recent Infinity Ward fallout, but the publisher will hope that if the measures are approved, it will be able to send a strong message to prospective talent about its ability to reward good work.