Activision Blizzard CEO Responds To Sexual Harassment Scandal: ‘I Am Truly Sorry’

Kotick wrote:

Over the last decade, as we’ve brought in new companies, grown our workforce, and expanded our business, we believed we had the systems, policies, and people in place to ensure that our company always lived up to its reputation as a great place to work. Clearly, in some vitally important aspects, we didn’t.

The guardrails weren’t in place everywhere to ensure that our values were being upheld. In some cases, people didn’t consistently feel comfortable reporting concerns, or their concerns weren’t always addressed promptly or properly. People were deeply let down and, for that, I am truly sorry.

Activision Blizzard is being sued by the California Department of Fair Employment and Housing (DFEH), which describes its workplace, particularly at subsidiary Blizzard Entertainment, as a “breeding ground for harassment and discrimination against women.” The company is fighting the suit. Meanwhile, the Securities and Exchange Commission is investigating its handling of these issues.

Activision Blizzard was also sued by the U.S. Equal Employment Opportunity Commission, which alleged “sex-based discrimination, including harassment” in its workplace; it settled, promising to create an $18 million fund to compensate claimants. DFEH has criticized the terms of the settlement, which has yet to be approved by the courts. It argues that $18 million is too little.

Kotick has been CEO of Activision Blizzard since its creation in 2008, and held the same role at its predecessor Activision from 1991. Last year, he earned $154 million, which made him the second-highest-paid CEO in the U.S. according to The Wall Street Journal. He has agreed for his compensation this year to be lowered to $62,500, California’s legal lower limit for “white-collar” salaried employees at large companies.