CtW Investment Group is going to make headlines again with them calling out this time with game company EA.
This group in particular has made headlines a month ago due to calling out Activision and its CEO Bobby Kotick saying that he is being paid too much. They asked the shareholders to vote against giving the publisher complete say in setting his compensation. This time around it is now asking the shareholders of EA to do the same thing.
A letter was sent to the shareholders of EA revealing the bonuses that the game company has paid to CFO Blake Jorgensen and CTO Kenneth Moss are not deserving. They argue that last year there were many layoffs of employees in the game company and the annual performance was below target at that time.
One part of the letter reads:
We urge you to vote AGAINST the “Say-On-Pay” proposal (Proposal 2) at Electronic Arts’ (NASDAQ: EA) Annual Meeting on August 6, 2020. The company has gone too far in terms of executive pay, piling on exorbitant equity awards to two executives — Blake Jorgensen (Chief Financial Officer) and Kenneth Moss (Chief Technology Officer) — and paying multimillion dollar bonuses following worker layoffs. While shareholders have benefited from appreciation in the company s stock price over the long term, we believe that these gains do not permit the company to indiscriminately pay its executives.
The investors are concerned with EA having an excessive equity granting problem. According to the group, the game company has granted its executives a new special award before the performance period for a previous one has even finished. They also think the awards are unjustified.
EA has not given any statement in regards to this letter as of the moment.
Source: Sec Report via VG247