Technology

Activision Blizzard faces new pressure from a group of state treasurers

expansion / / The publishing headquarters of Activision in Santa Monica, California.

continuation Proceedings When Research Surroundings Extensive reporting on employee harassment and gender inequality issues Activision Blizzard is in the spotlight of six state treasurers who are looking for major changes in the company.

Axios report In a letter sent to Activision Blizzard last month by state treasurers in California, Massachusetts, Illinois, Oregon, Delaware, and Nevada, “The company’s directors address the challenges and investment risk exposures facing Activision. We are asking you to meet. “The group also states that it is considering” a call to vote against the re-election of incumbent directors. ” Similar call from activist investors In the last few weeks.

“I think the company needs to make drastic changes,” Illinois Treasurer Michael Frelix told Axios. “Current CEOs and boards lack the skills and beliefs to make these radical changes needed to transform culture in order to regain trust with employees, shareholders and their partners. I’m worried about that. “

Illinois is one of the states investing in Activision through: Its employee pension fund And other public investment. This makes the decline in the company’s stock price a direct concern for the state government. At the time of this writing, Activision’s inventory has dropped by almost 40% since six months ago, and by nearly 35% in the previous 2021 calendar year.

September, Activision Blizzard Settlement reached in federal proceedings At $ 18 million, it’s a small part of our annual revenue. Frerichs told Axios that the reconciliation “as a penalty, perhaps admitting past mistakes,” but considers it far from sufficient.

“We are long-term investors and we hope that the risks that caused the penalty will never happen again,” he said. All of them. But if we continue to have a culture of creating new casualties in the future, we are creating more risk for the company. “

Newly reported pressure from the State Treasurer is coming as Jecica Nzareth, Activision Blizzard’s key employee organizer. Announced that she will leave the company.. Gonzales Better ABK Workers Alliance And together Many employee strike To protest the processing of allegations by management.

“NS [CEO Bobby Kotick]: Your omissions and denial of accountability are driving great talent, and the product will suffer until you leave your position as CEO, “Gonzales wrote. Public departure message.. “This may seem tough, but it took years to fix the culture and see where the company is currently standing.”



https://arstechnica.com/?p=1817477 Activision Blizzard faces new pressure from a group of state treasurers

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