Several states are placing new pressure on Activision Blizzard to make changes to the allegations the company faces. workplace problems, different cultures and allegations of harassment. As reported by Axios ‘Stephen Totilo, six state treasurers sent a letter to Activision Blizzard requesting a meeting with its board of directors to “discuss your response to the challenges and investment risks facing Activision.”
The letter was brought in by state treasurers from California, Illinois, Delaware, Nevada, and Massachusetts and requested a meeting by December 20. They noted that based on the responses they received, they will consider voting calls against the re-election of some members of the board of directors, similar to a recent effort by a group of shareholders.
Why does this have to do with state coffers? Countries are stakeholders as they invest in different markets and companies to fund budget items such as pension funds. Shares of Activision Blizzard have taken a hit over the past few months, with an overall loss this year. According to Illinois State Treasurer Michael Frerichs, who told Axios they “think the company needs sweeping changes,” Illinois has been hit by the stock drop.
However, the key factors impacting this effort by the states are the various allegations and lawsuits related to harassment, discrimination, sexual misconduct, and allegations disclosed in a recent Wall Street Journal article. what CEO Bobby Kotick knew and allegedly did (or didn’t do).
Frerichs expressed a lack of confidence that Kotick and management had the ability or confidence to make the necessary changes. Deborah Goldberg, Massachusetts treasurer, quote company statement that they sided with their chief executive officer and ‘zero tolerance policy’ but called for an independent investigation.
Activision Blizzard’s only response so far is that it has responded to the letter and is considering its next move.
https://www.mmorpg.com/news/six-state-treasurers-request-meeting-with-activision-blizzard-over-allegations-and-distrust-in-leadership-2000123759 Six State Treasurers Request Meeting with Activision Blizzard on allegations and lack of confidence in leadership