Durkin also gets a signing bonus of $3.75 million on Jan. 2, 2020, if he has neither quit nor been fired by that time.
Further, Durkin gets $11.2 million worth of restricted stock units that will vest in two years if he meets certain performance goals.
By comparison, Neumann earned a base salary of $503,000 as Activision chief financial officer in 2017, per an SEC filing, plus cash bonuses and equity awards that totaled about $9 million.
The filing did not say what Durkin’s performance goals were, indicating that they would be laid out in Activision’s forthcoming annual report.
Restricted stock units are increasingly seen in executive compensation packages, said Chris Krogh, an auditor at Squar Milner, because they are less risky than stock options.
Executives can obtain some of their performance bonus even if the company’s stock price declines, Krogh explained.
The practice started, Krogh said, when some technology companies saw a drop in their share price but positive numbers elsewhere, such as increased revenue and profits.
Activision has seen a recent decline in its share price. It was trading at $46.54 a share on the Nasdaq at the close of trading on Jan. 11, down from $83.39 a share three months earlier.
The latest dip came after Activision announced it severed a contract with video game developer Bungie Inc.
• • •
Universal in Asia
Universal Music Group has “significantly expanded” its “finance, marketing and public policy infrastructure in Asia,” the Santa Monica-headquartered company declared in a press release earlier this month.
The release announced six hires to Universal’s China and Southeast Asia leadership team.
They include a new chief financial officer for UMG Greater China, Aaron Wang, formerly of Yake Trade Co., and a new finance director of Universal Music China, Tracy Mu, previously at Dolby Laboratories Inc.
The hires are part of a series of personnel announcements and acquisitions Universal has made in the last few weeks.
They come as Universal’s France-headquartered corporate parent Vivendi is looking to sell off half of Universal. Buyers are not scheduled to be announced until the end of 2019.
Staff Reporter Matthew Blake can be reached at email@example.com or (323) 556-8332.
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