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EA has been accused of executive overpay amid corporate layoffs

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rjohnson11
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2020/07/09 07:34:44 (permalink)
https://www.overclock3d.net/news/software/ea_has_been_accused_of_executive_overpay_amid_corporate_layoffs/1
 
Like many large corporations, EA has been accused of overpaying their executives, doing a disservice to both shareholders and employees by paying multi-million-dollar bonuses to high-level employees in addition to their already high salaries. The "Change to Win" (CtW) Investment Group has launched a shareholder campaign against Electronic Arts, alleging that the publisher has pushed its executive pay to levels which are crazy given the company's recent mass layoffs. Back in 2019, EA laid off 4% of its employees. In contrast, since 2017, CFO Blake Jorgensen and CTO Kenneth Moss have received millions in "special equity awards" from the company in addition to their "already above-median compensation (salary)." To be specific, Jorgensen received a $10 million special equity grant along with his standard $6.5 million annual grant, while Moss got a $7 million grant on top of his $5.5 million annual grant. 

CtW's executive director, Dieter Waizenegger, has asked EA's shareholders to vote against the company's so-called "Say-on-Pay" proposal, pointing towards a severe "equity granting problem" within the company alongside other concerns. Typically, companies point towards employee retention and financial performance as reasoning for high executive pay, but CtW has stated that "the notion that executives need to be incentivized with pay above-and-beyond the ordinary course program is a complete fallacy in almost all cases."
 
Overly high Executive pay and "special equity awards" has lead to shareholder dissatisfaction and an increasing pay gap between executives and employees. Financial rewards should be rare, and come as the result of satisfactory work. Based on recent trends, these rewards have been practically guaranteed for executives of many companies, even when other employees face layoffs. EA's annual shareholder meeting will be held in August, where shareholders will core on the company's "Say on Pay" proposal. Only time will tell if CtW's campaign will result in widespread shareholder action against executive overpay. 
 
This seems to be typical of most all American businesses and it really needs to stop. 

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#1

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    aka_STEVE_b
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    Re: EA has been accused of executive overpay amid corporate layoffs 2020/07/09 08:03:09 (permalink)
    I can barely stop laughing  -- like this is different in 9/ 10 companies....

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    #2
    way2faded
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    Re: EA has been accused of executive overpay amid corporate layoffs 2020/07/09 22:13:51 (permalink)
    Where's the article on how Bezos made over $20 billion in the first quarter capitalizing on fear and panic...meanwhile sending millions of PPE directly to the most corrupt government in the world (CCP). Never did they even question why China where most of the main PPE and respirator manufacturing facilities are...needed to buy up all of the PPE.

    Instead we get a trash article about EA execs and their "already above-median compensation."

    #3
    knightsilver
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    Re: EA has been accused of executive overpay amid corporate layoffs 2020/07/11 00:32:36 (permalink)
    For once, its not just EA, look at 50% American adults being stupid passed few months,
     
    Id totally wear a baseball cap that read "Dont be a dumbazz!" ....
    #4
    Hoggle
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    Re: EA has been accused of executive overpay amid corporate layoffs 2020/07/11 02:52:22 (permalink)
    Years ago I heard video game lawyer say that they submitted the same legal document six times to EA and it was always sent back for revisions. After review he sent the exact same letter only once making a correction to put it on the EA letterhead. Each time it was sent back to him he re-read it and found it legally solid and billed EA for his time reviewing it. The problem is that EA has became so big nobody at the cooperate office wants to approve anything without sending it back for review before sending it to the supervisor for review and them them asking for revisions before they pass it up the chain. 

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    #5
    kougar
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    Re: EA has been accused of executive overpay amid corporate layoffs 2020/07/11 16:47:33 (permalink)
    Hoggle
    Years ago I heard video game lawyer say that they submitted the same legal document six times to EA and it was always sent back for revisions. After review he sent the exact same letter only once making a correction to put it on the EA letterhead. Each time it was sent back to him he re-read it and found it legally solid and billed EA for his time reviewing it. The problem is that EA has became so big nobody at the cooperate office wants to approve anything without sending it back for review before sending it to the supervisor for review and them them asking for revisions before they pass it up the chain. 




    That's just corporations in a nutshell. Inefficiency and focus on covering one's backside more than helping the company as a whole every step of the way. 


    Have water, will cool. 
    #6
    fearpoint
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    Re: EA has been accused of executive overpay amid corporate layoffs 2020/07/27 20:15:29 (permalink)
    Unions are far bigger crooks.
     
    Nothing is stopping these people from creating their own company and living the dream, except talent, results, and the balls to risk capital that is.
     
     
    #7
    Brad_Hawthorne
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    Re: EA has been accused of executive overpay amid corporate layoffs 2020/07/28 07:24:53 (permalink)
    My eyes glaze over when people write articles about class warfare. EA will sink or swim in the free market on it's own merits. It's a company. It adapts or dies in a free market.
    #8
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