650°

Activision welcomes its new CFO with $15 million after telling Blizzard to cut costs

The major publisher clearly has money to spend on staff

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Sciurus_vulgaris1942d ago

Why on Earth do executives get paid so much and get such ridiculous bonuses? Executives even get severance pay when they are fired.

blacktiger1942d ago

that's because that's what the contract says.
It starts like this example for Satya Nadella, Microsoft CEO
He gets this much total, but half of it will be stocks, the stocks will be paid consecutively as guaranttee Microsoft to go higher, meaning he gets like 50 million plus another 20 million worth of stocks if he makes microsoft more revenue which he is, plus and this and that. In the long run they focus is to get Satya Nadella part of Microsoft, even when he gets fired no problem, be a advisor.

That's the kind of position they gave him. It's not a job, it's a position

Sciurus_vulgaris1942d ago

Its still strange that executives (like Dice's former CFO) get paid bonuses after they cause loses in revenue and sales, brand damage and negative PR.

UltraNova1942d ago

@Sciurus

"Part of the game"

blacktiger1941d ago

It's like a chicken and egg game, everyone is doing it. You know how hard is to get people in board. Before Satya Nadella, Sundar Pichai was the hottest ceo and still is, Google had to pay so much to stay away Microsoft and Apple. This is the game they play but yeah, developers gets peanuts.

Scar-1942d ago

Meanwhile the developers and testers make peanuts. Even the high level devs don't make anywhere close to this much its just stupid how this industry is structured.

DarXyde1942d ago

It's far from just this industry, my friend.

There's really no reason for these executives to make so much while employees who are creating the products are far more worried about their finances. Sure, most of their pay is in stocks, but (a) they still usually clear about $1M in base salary and (b) there's no reason why they can't split executive stock offers and share with employees. Americans could live good lives where they're not struggling so much, but I guess it's more important to give executives more than they need in 2 lifetimes.

Honestly, I'm not even saying that you can't pay executives more, but that's a pretty serious gap.

GameStallion1941d ago

Yeah. It’s better when companies are structured as a profit share.

PoSTedUP1941d ago (Edited 1941d ago )

no reason for someone who has worked harder and qualifies to generate millions and billions of dollars to get paid accordingly? the reason programmers and testers dont make what a ceo or cfo makes, as talented as they are, is because 1) they dont qualify to generate that much money, and they dont 2) have not chosen that career path 3) are easily replaceable in more cases than not. they are the laborers of the tech industry and that is their role. why dont the people who put the parts together make as much as programmers or ceos? sports players make millions because they generate that money accordingly and not everyone can play on that level and do what they do. they worked harder than others to get there and are qualified, so they get a contract. sometimes they mess up or get injured etc bc shit happens. but they are issued that contract bc the owners have trust and faith in them as they are qualified. if they dont improve they are done at the end of their contract and will be signed to a new one etc. or in some cases get sent back to the minors. this is capitalism not socialism. i dont make 10 million a year because i didnt chose that career path or work hard enough to. i dont get paid what my boss gets paid because i did not work hard, put in the time and dedication to build a business etc. i didnt sign up for my job knowing what im going to make to b**** to my boss that i want a him to make less of what he earned or to get a bigger piece of the pie of something i didnt build. the real bs is in other countries where doctors and higher professions work harder than everyone else and dont make significantly more than the average citizen.

spwittbold1942d ago

Because everything that happens in the company is ultimately their responsibility.

opc1942d ago

except for when they get fired and then get a bonus...

LightofDarkness1942d ago

This is often the reasoning/excuse, but the reality speaks to a very different reason. These people are handed golden parachutes when a company dives or goes in to free-fall, and they still get another gig steering some other company astray for the same money or more. It's very much a case of being in the big boys club: once you're in, you're in. You need not be held accountable for your screw ups. The employees and shareholders will bear the impact instead, while you receive a bonus, severance and another cushy gig elsewhere.

The thing is, these people are the new lords. The new aristocracy. They only get away with this because no one has the balls to tell them "no".

Godmars2901941d ago

Suppose to be their responsibility. In reality, they can look out for themselves and only themselves.

TiredandRetired1942d ago

According to Bloomberg: "Dennis Durkin joined Microsoft in 1999 and spent his first seven years in Microsoft corporate development. He managed a team that was responsible for helping shape acquisition and investment strategy for Microsoft's Information Worker, Business Solutions, Windows and Home and Entertainment business units. From 2001 to 2003, he was headquartered in London focusing on European opportunities at Microsoft. He worked on a variety of acquisitions and partnerships in areas including games, Microsoft Office, unified communications, security, digital media, Windows Client, Microsoft TV and cable and services.

He served as Corporate Vice President of Microsoft Corporation and also as Chief Operating Officer and Chief Financial Officer of its Interactive Entertainment Business. He was responsible for all financial planning and analysis relating to the Xbox 360 console, Kinect, Xbox LIVE, accessories, first- and third-party games software, Mediaroom and Zune."

He does have experience, love or hate Microsoft. (That Zune though, lol!)

Even with all of his success though, it still is hard to fathom one guy making more money than most of all of his employees combined. The ones who will be doing the hard labor and love of game making. Game directors make huge decisions and risks too, but they don't get compensated anything like the corporate board. Damn shame.

Smokehouse1942d ago (Edited 1942d ago )

It’s because the labor liberals are dead in America. The modern progressive left are for the rich elites now. They care more about superficial platitudes than the working class. Identity politics and other useless garbage smokescreens.

It’s everywhere, do the left bitch about the Amazon work conditions? About how employees are pissing in bottles while Bezos becomes the richest man in the world? No, he donated to the Democratic Party so it’s ok. Zuckerberg and Facebook? Uber? Google? The modern left is an absolute joke and the balance has been ruined. They don’t care when the power is theres.

Ceaser98573611942d ago

Damn! Tim Cook recently got a pay check hike and its 15 million.

2pacalypsenow1942d ago (Edited 1942d ago )

Because the job requires a lot of knowledge and are in high demand.

Cant just pickup some random guy of the streets and ask him to be the CFO of a multi billion dollar company.

mav8051941d ago (Edited 1941d ago )

It's incredible (and sad) how little people know about business.

Number 1- who cares how much this guy its paid? What is it to you? If the other employees are worth so much, then certainly they can go elsewhere and make more money right? Even if Activision decided to pay their CFO a fraction of this salary, say 500,000, Activision has 4,000 employees and that would result in less than $3,500 more per employee... in addition to likely being more than they're worth (according to the market), it's hardly enough to make any change in one's lifestyle.

Second- the reason 'executives get paid so much' is simple, it's because the owners of the company (read shareholders) and those entrusted to make these decisions by the owners have decided that the executive is worth the money. Sometimes they're wrong. If you don't agree with the board and you're an owner, sell your shares. See how simple things are?

Edit- also, those in executive positions like a CFO have much higher degrees of responsibility and liability than a typical employee. They also work constantly, so the argument that they aren't doing 'the real work' is an empty argument. There's much more to making a product than what you see as a consumer.

Godmars2901941d ago

Because they're in charge.

*drops mike*

Godmars2901941d ago

Edit:
Suppose to be "Fox running the hen house" kind of statement.

Profchaos1941d ago

The rationale that they give is it costs money to attract the best in the business the reality is that isn't always the case and far to often it's just exorbadent and attracts execs that have no interest in the company or the product or even the customers.

Case in point this type of move

+ Show (8) more repliesLast reply 1941d ago
beulahland1942d ago (Edited 1942d ago )

If that means more (good) games, what's the problem? It's a private company, they pay what they want for whoever they want. Anything Activision related now is a reason to scream "WITCH! WITCH!"
Chances are he won't do any miracles, though.

ravinash1942d ago

The thing we see over and over is these companies paying loads of money for these people who come in, and regardless of how well they do... or badly... still get paid these stupid amounts.
I've seen companies driven into the ground by these people, and then they walk away with their pockets filled with cash when everyone else is now out looking for new jobs trying to pay their mortgage.

Often it's the same people going round in a small circuit from company to company collecting their pay and then moving onto the next one.

Bear in mind my wife used to work in a head hunters company which role is to basically use their contacts to keep finding these roles for these people.
It's very hard for anyone new to get in because it really is a case of who you know rather than what you know.

Kabaneri1942d ago

The AAA industry is crashing right before our eyes.

Xb1ps41942d ago

RIGHT... instead of putting in that kind of money towards games and the ppl that actually make them they rather pay a suit and tie millions just to sit in front of a computer and figure how they can fuck over the little guys that make it happen.

Godmars2901941d ago

Not just that little guy, but the one who buys it as well.

AnnaDea1942d ago

no cash from me anymore activision....

sander97021942d ago

"Corporate, corporate never changes..."

Profchaos1941d ago

It's not always the case just ea and Activision take two are going alright they have the sense to give developers free reign with time and budgets rockstar took 8 years for rdr2 for example

+ Show (1) more replyLast reply 1941d ago
-volt-1942d ago

Unless you started and own your own company there is no job on earth that justifies paying executives excessive salaries.

Xb1ps41942d ago

I would love to see his job description and compare it to the workers that imo actually work! I’m out of here shit pisses me off.

2pacalypsenow1942d ago

You think CFO's don't work? My dad is a CFO and trust me, they work...

BigTrain1941d ago

@2pac

It's not so much a question of whether they work but more so if what they do warrants 15 million. Especially when average Joe makes 48000 annually. The gap is disturbing.

PoSTedUP1941d ago

ever meet an actuary or someone going to school for actuary science? they are on a whole other level dude. just the work they do to get their degree is insane. makes my physics/chemical engineer friend look like a middle-schooler. CFO can be responsible for a company making extraordinary gains. think every company that has done well and is making hundreds of millions, or billions, the CFO has played a huge role in that. thats what warrants his pay. not only do they work their ass off getting their degree, they work their ass of up the corporate ladder they dont just become a CFO overnight.

Godmars2901941d ago

@PoSTedUP:
But then there's the example of companies tanking, likely from things done by the CFO, and when that company goes under the same CFO takes what's left to the detriment of those under them. Have in fact engineered things to turn out that way.

This specific case is about Activision being in trouble, repeatedly cutting corners with their products and now losing a major asset, and handing over money that could have been used to fix issues to someone who has yet to do anything.

PoSTedUP1941d ago (Edited 1941d ago )

the CFO doesnt take whats left he gets paid a salary and has a contract. if he takes anything that would be fraudulent. and yes CFOs make mistakes and dont always succeed in their projections.

the 15 mill (11.5 only if he hits performance targets) is to get him to stay, since he was activision-blizzards CFO for 5 years. he was thinking about jumping ship supposedly. they apparently have confidence in this guy and know what he can do. so its not like he hasn't done anything yet. they need him to turn things around. and i dont blame them they are desperate. 15 mill else where isnt going to do squat in the light of turning a big company around, but they can give it to someone who they know has the ability to. and what better incentive than in stocks tied to a performance target! he doesnt get 11.5 mill unless he does a good job.

if my business selling bread took a hit, i cant sell it and people arent buying it; should i spend 80k and buy more bread, split 80k between my cashiers, or spend it on someone who knows how to sell the bread and save my business and making me more money...?

+ Show (2) more repliesLast reply 1941d ago
Godmars2901941d ago

How does even that excuse "excessive" salaries?

Xb1ps41942d ago

This is disgusting.. it’s always the people that don’t do shit that get paid so damn well, while the ones that actually work get the crumbs..

Just like my damn job.. got a gm that gets paid six figures with another six figure bonus... that’s not all he gets the ass hole came in knowing nothing about our field of work, nothing at all and gets a company vehicle company gas and to top it all off they pay his fvcking rent cause he moved from another state..

Just disgusting

2pacalypsenow1942d ago

"This is disgusting.. it’s always the people that don’t do shit that get paid so damn well"

Do you know what a CFO is, and what they do?

Xb1ps41941d ago

Yea a chief financial officer..

In other words a glorified finance guy.. I’m sure they work very hard... so hard that this guy deserves millions over the workers that perform the jobs that actually bring in the money to afford a cfo salary like this one.

2pacalypsenow1941d ago

Not saying he deserves 13 million, but handling a billion dollar companies fiances and answering to shareholders is no easy task.

Otherwise everyone would do it.

PoSTedUP1941d ago

go look into becoming an actuary scientist then get back to me. not only that but the fact that they can, and a lot of the times do, make the companies filthy rich from what they know and what they do. 15million is an investment in this guy to get him to potentially make billions of dollars grow. the laborers are easily replaceable, this guy not so much.

Xb1ps41938d ago (Edited 1938d ago )

I’m sure it’s not easy to answere questions... but who’s really making the company billions of dollars? In this case, is it not the guys making the games that ppl are buying?! How did the company make its revenue to afford that ridiculous salary? All I’m saying is share the wealth, distribute that money better than that.

What’s a cfo with that kind of salary to a company with out the workers that make the product?

Look at postedup response... “laborers are easily replaceable” yea... let those laborers go on strike for 2 months good luck replacing them soon enough before the stocks crash and if the cfo protect the investors through that then maybe he or she is worth all that money.

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160°

Brad Hilderbrand explains the reason behind the recent Xbox studio closures

There are two reasons why all those Bethesda studios closed, and neither of them have anything to do with Bethesda (directly)...

Game Pass and Activision.

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Christopher2h ago(Edited 2h ago)

The guy confirming what we've all (well, most of us) been saying since the latest purchase.

XiNatsuDragnel2h ago

I'm not surprised Microsoft guys are crock nuff said

isarai2h ago(Edited 2h ago)

Honestly i think Bethesda needs to buy themselves out of zenimax/MSs hands and do their own thing, i honestly think that would fix a lot of issues and save them from a potential closure.

Zeref1h ago

There's a reason they sold in the first place. And Bethesda is not closing anytime soon lol. As much as I hate the studio closures. They were all small studios 2 of them were mobile studios.

I think these are growing pains and Xbox will get back on track. But they're not getting any more passes.

jwillj2k421m ago(Edited 21m ago)

I’d like to see your reaction to being growing pained out of your job after the launch of a successful product.

Einhander19721h ago

Ah, we can see how the Microsoft media machine works.

Every article I read now is some kind of attempt to shift the blame off Microsoft and paint them as the victims or convince people that Microsoft mistakes were just some kind unforeseeable unfortunate twist of fate.

The shills are out in full force today.

Christopher1h ago

This is not at all what this article is saying. It's saying that honest and useful studios are getting closed because of big money deals elsewhere and the faults with game pass as a model.

Einhander19721h ago

I understand what the article is about.

It's a deflection, it's a putting the cart before the horse article.

Let me tell you how this problem wouldn't have existed in the first place.

Microsoft not creating a service funded by subsidization and having the foresight to see that it would disrupt consumer spending habit to begin with. Then not buying Bethesda and undertaking costs for a service that was already failing to pay for itself because their own expectations of Game Pass having "billions" of subscribers was unobtainable from the very start.

And if you don't think that was the case go back to the article on the day Game Pass launched and read the comments from people from day one who foresaw that this would be an unsustainable model and would cause people to stop spending in the same way.

Christopher1h ago

***Microsoft not creating a service funded by subsidization and having the foresight to see that it would disrupt consumer spending habit to begin with.***

This article literally supports this opinion. He's not praising Game Pass or the ABK purchase.

Einhander197249m ago(Edited 48m ago)

This is an explanation of why it failed, there is zero blame put onto Microsoft itself.

Yes, it talks about what went wrong, but it doesn't say Microsoft shouldn't have done it. It doesn't say Phil should have foreseen this outcome and stopped before it got to this point.

"convince people that Microsoft mistakes were just some kind unforeseeable unfortunate twist of fate"

Christopher42m ago(Edited 41m ago)

***but you're seeing the impact; all those smaller studios making really interesting games are going to fall away, simply because as good as games like Hi-Fi Rush are, they're never going to make enough money to make up that $70B hole that Xbox now has to dig itself out of.***

If you see that as support or you explicitly just want people to end their argument with "and, in conclusion, Microsoft bad" then that's on you. This article does not support Microsoft's choices and highlights the faults. Nothing it says is good about these choices, even saying that putting CoD on Game Pass would be money losing for them because they've set themselves up for failure (and not putting it on there will drop subscriber numbers like crazy, meaning their Game Pass plans were shit to begin with).

No matter how you look at it, they're saying Microsoft made decisions that hurt the bottom line, force closures, and leave Game Pass in a situation where they lose no matter what they do. It's all negative.

Einhander197235m ago

Christopher, if Microsoft hadn't made Game Pass and bought a bunch of publishers would this article even need to exist?

Christopher5m ago

***Christopher, if Microsoft hadn't made Game Pass and bought a bunch of publishers would this article even need to exist? ***

How is this an argument to anything being discussed? This is just as valuable of an argument as "if fish had stayed in deeper waters, they wouldn't have evolved to tetrapods, adapted to shallow water and then to land, and we wouldn't even exist and have to worry about game pass at all."

You're bringing nothing to this argument and then complaining that other people are highlighting the issues with Game Pass and spending tens of billions on studios because what we should be discussing is what it would be like if Microsoft hadn't done any of that.

Well, they did do it. Now pull up your big boy pants and join in on the discussion of what that has meant for the industry since then and, especially right now, how that is affecting the industry and game studios under Microsoft. None of us are able to go back in time and change what was done.

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MrDead21m ago

It's greed. MS has the IP's it wants now it's dumping the studios that it's raided, MS will still make money from Tango's games unlike the people that made them. If anyone follows MS outside of gaming you'll see this is what they do, buy companies take what they want consolidate some of the workforce and shut them down. I don't know why people are acting so surprised when this is Microsoft being Microsoft.

MS is a three trillion dollar company, if it enters a market it has no need to compete, they take what they want and with the financial influence it can bypass laws that are meant to protect the consumer and the workforce. Just look at how they are cornering the AI market right now with buyups and investments.

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40°

Capcom Had Record Sales in 2024 Fiscal Year

Capcom Co., Ltd. today announced that in its consolidated earnings for the fiscal year ended March 31, 2024, net sales were 152,410 million yen (up 21.0% year-over-year), operating income was 57,081 million yen (up 12.3% year-over-year), ordinary income was 59,422 million yen (up 15.7 % year-over-year), and net income attributable to owners of the parent was 43,374 million yen (up 18.1 % year-over-year).

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capcom.co.jp
70°

Game Developers Have Begun Confirming Nintendo Switch 2 Support

Game developers have already started to confirm that they will support the Nintendo Switch 2 with their future titles.

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twistedvoxel.com