Date: 15 August 2020
To: Professor Rigolino
From: Ankelo Jeff Aurelus
Subject: Information Detailing my Plans for the Persuasive Business Letter
My ethical dilemma is how much more should CEOs be paid in comparison to their employees?
Specifically, how much is a CEO worth in a company? My specific case study is that of Bobby
Kotick, CEO of Activision Blizzard. In 2019, Activision laid off approximately 800 employees
despite Activision claiming it hit record sales in 2018. However, according to this Ars Technica
article, Bobby Kotick earned about $20 million in combined stock/option equity per year and the
board voted this year to increase his pay. Those employees earned less than ⅓ of 1% of his
earnings.
I believe CEOs should not be paid bonuses and should take a pay cut when the company is faced
with layoffs ensuring e workers can live comfortably, receive benefits, and not worry about
losing their jobs. CEOs’ pay also should be monitored by shareholders so people decide what’s
fair and ethical. Because businesses for years opposed laws such as the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010, companies were able to hide any evidence of
excessive pay. Additionally, because Reagan era economic policies reduced top marginal tax
cuts and allowed stock buybacks, the economic disparity between worker and employer, and
between the rich and blue-collar has grown larger.
I’m writing to Bobby Kotick because I’m familiar with the gaming industry. Activision’s shady
practices, or rather, the gaming industries shady practices are known to most who play video
games. Their games are filled with microtransactions (essentially gambling using real-world
money) enticing children to pay cosmetics for video game characters. Or their annualization of
games despite those involved in the game pulling all-nighters constantly and sleeping on their
desks. Or even how companies will release a $60 game unfinished simply because it’s easier
than fixing it. This relates back to Bobby and his “movie-star” lifestyle. Or how he tries
defending his exuberant wages when 800 people lost their jobs. While industry workers are paid
below minimum wage on the promises of bonuses, Bobby is relaxing on a private helicopter to a
LA basketball game. Trying to understand why someone continues to hoard wealth their needs
and wants are easily met connects perfectly with my ethical dilemma. That’s why I want to write
to him.