Activision and EA Make As You Sow’s 2019 List
Since 2015, non-profit advocacy group As You Sow has released an annual report on the most overpaid CEOs of the year. What makes this year particularly interesting is that two gaming companies, Activision and EA, both made appearances on The 100 Most Overpaid CEOs of 2019 list.
The list, which is designed to hold companies accountable for “excessive consumption,” show Activision’s Bobby Kotick and EA’s Andrew Wilson make the top 100. As You Sow bases its estimates on a CEO’s yearly earnings that are based on account shareholder returns. Kotick is at number 45, who makes more than $28 million a year which As You Sow estimates is $13 million too much. Andrew Wilson appears at number 98, with an annual pay of more than $35 million and an overpayment of $19 million. Other companies that made the top 25 are AT&T and Netflix.
As You Sow determines these numbers by comparing the median ratio between company CEO and median worker which is 142:1. Activision was 301:1 and EA’s was 371:1. The average list ratio is around 300:1.
This list comes on the heels of both companies releasing their recent fiscal results. Just this month, Activision Blizzard laid off over 700 employees while EA wasn’t too thrilled with their quarterly results, citing low sales expectations for Battlefield V. On the other end for EA, however, is the surprising success of Apex Legends which should make up for any shortcomings next quarter.
What do you make of this Top 100 List? Are you surprised with the companies on the list? Leave a comment down below.