As You Sow, a San Francisco-based activist group, floated the proposal. Conrad MacKerron, director of the group’s corporate responsibility project, says the measure received 69 percent support from investors at Activision’s annual meeting on September 27.
“We were a little shocked,” MacKerron says. “This goes way beyond the smaller group of activist shareholders to Activision’s more mainstream investors. It should send a big red warning to management.”
In a statement, Activision confirmed that the nonbinding stockholder advisory vote did pass last week with majority approval (it wouldn’t confirm the vote total), and that it was “evaluating” the proposal. Ashley Dyer, a spokesman for the Santa Monica, California-based company, declined to comment further.
Activision is currently being investigated by the Securities and Exchange Commission regarding its past stock option granting practices.
Activision becomes the seventh company this year to have a say-on-pay vote reach majority support, according to RiskMetrics Group, a governance research firm. The proposal has averaged 42.4 percent in 42 shareholder meetings since January.