Activision Blizzard CEO's Shareholder Letter Promises To Create Safe Work Environment, Implement Inclusive Hiring

The CEO of a video game company facing lawsuits and investigations over its work environment is speaking out about changes the company will make going forward.

What Happened: Activision Blizzard, Inc. (NASDAQ: ATVI) is stepping up its game to create a safe work environment and be more inclusive with its hiring practices.

“My goal — and the goal of our Board, our entire senior corporate team, our business unit leaders, and their teams — is to make sure you have the resources, culture and commitment from leadership you need to succeed in our collective aspiration to be the model workplace in our industry,” Activision Blizzard CEO Bobby Kotick said in a shareholder letter.

“People were deeply let down and, for that, I am truly sorry.”

Activision Blizzard has tripled its investment in anti-harassment and anti-discrimination training.

Kotick outlines five changes the company will make to help workplace culture:

• Launching a new zero-tolerance harassment policy for the company.
• Increase the percentage of women and non-binary people employed by Activision Blizzard by 50%. Activision Blizzard will invest $250 million to hire more diverse talent. (Kotick notes that 23% of the company’s current employees identify as women or non-binary.)
• Waiving required arbitration of sexual harassment and discrimination claims.
• Increase visibility on pay equity.
• Will provide progress updates quarterly and in the ESG and shareholder reports.

Related Link: Activision Blizzard Pauses BlizzCon: What Investors Should Know 

Why It’s Important: The letter from Kotick comes as the company faces lawsuits and an SEC investigation over its work culture.

The steps outlined by Kotick could go a long way to soothe investors and employees.

Kotick also announced he is reducing his pay to the lowest amount allowed by California law, which is $62,500 annually. Kotick said he is asking not to receive any bonuses or any additional equity.

“I am grateful for how much people care about this company, and I appreciate that many past and present employees have reached out with their thoughts, concerns, complaints and suggestions,” Kotick said.

Activision Blizzard is set to report third-quarter earnings on Nov. 2.

Price Action: ATVI shares are up. 0.019% to $78.67 on Thursday morning.

Photo: TriplePoint TriplePoint via Flickr