Over 100 Activision Blizzard’s employees have staged physical and virtual walkouts from their homes and Blizzard offices as new allegations have surfaced claiming CEO Bobby Kotick knew about employee misconduct including alleged rape and sexual harassment.
A new report by the Wall Street Journal alleged that Kotick not only knew about the misconduct, but also minimised its severity to Activision Blizzard employees and its board of directors. The WSJ report cites interviews, emails, regulatory requests, and other internal documents that informed Kotick about the alleged incidents that took place between 2016 and 2017.
Hundreds of Activision Blizzard employees and contract workers signed out of work on Tuesday calling for CEO Bobby Kotick’s resignation. A report by Polygon noted that over 150 people were present at a protest held at Blizzard’s campus in Irvine, California.
The report also detailed former Blizzard co-leader Jen Oneal’s departure from Activision Blizzard after she reportedly lost faith in the company’s willingness to turn around its toxic culture. Oneal also said that she had been discriminated against and underpaid compared to her male counterpart, Mike Ybarra.
Activision spokeswoman Helaine Klasky told the Journal, “Mr. Kotick would not have been informed of every report of misconduct at every Activision Blizzard company, nor would he reasonably be expected to have been updated on all personnel issues.” She said Activision sometimes “fell short of ensuring that all of our employees’ behavior was consistent with our values and our expectations.”
The California Department of Fair Employment and Housing (DFEH) sued Activision Blizzard in July after a two-year investigation into the company’s alleged “frat boy culture.” Several executives at Blizzard, including President J. Allen Brack and CEO Bobby Kotick, were named in the lawsuit for knowing about the toxic environment brewing at the company.
And while Brack stepped down from is position in August this year, Kotick still serves as the company’s CEO. The Journal also reported that Kotick was under investigation with the Securities and Exchange Commission over his knowledge of these incidents and the information he provided to other employees, investors, and the board of directors.
Apart from the lawsuit by the California Department of Fair Employment and Housing, Activision Blizzard was also sued by shareholders in August. To resolve the matter, the company agreed to an $18 million settlement with the Equal Employment Opportunity Commission (EEOC) back in September.
As shocking as the allegations against Mr. Kotick maybe, the board of directors have voiced their support for the CEO. A statement released by the Activision Blizzard’s board of directors reads, “The Board remains confident that Bobby Kotick appropriately addressed workplace issues brought to his attention.” You can read the full statement here. However, with the backing of the board, there are little signs of CEO Bobby Kotick losing his job.
This is not the first time Kotick has found himself in hot water. The WSJ report also detailed an incident that took place in 2006, where Kotick was accused of threatening his female assistant by leaving a voice message saying he would have her killed. Activision noted that the Kotick had apologised for the incident 16 years later for the obviously hyperbolic and inappropriate voice mail.”
Kotick was also sued by a flight attendant in 2007 on a private jet he co-owned. The attendant claimed that she had been harassed by the pilot of the jet and was fired by Kotick after she companied about the incident. In 2008, a settlement was reached by paying the attendant $200,000, according to the arbitrator’s decision.
Also Read: Blizzard halts plans for BlizzCon 2022
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
