All companies and their shareholders want the business to be successful, but this does not mean that both agree on how to make it successful. Though, it is how to be successful where shareholder disputes can occur, which was the subject of a recent blog post. And, this is just what Activision Blizzard is handling now, in addition to internal and external issues.
Back in July, the California Department of Fair Employment and Housing lawsuit filed a lawsuit against Activision Blizzard, and some of our readers likely have already heard about that lawsuit. CDFEH alleged that the video-game company created and perpetuated pervasive sexual harassment and discrimination against women.
These allegations by CDFEH have not gone unnoticed by the company’s employees as well. Indeed, they agree with the assessment and sent an open letter to the current executive team stating as much. It was signed by over 2,000 employees, both current and former. They have even gone as far as sharing salary information en masse to highlight the company’s pay inequities.
What many have not known is that the company’s own shareholders have been fighting with the company for longer than the company has dealt with these other two issues. Specifically, an investor group that represents about 0.4% of the outstanding shares have repeatedly pushed for the elimination of executive compensation, clawing back already paid compensation, changes in employment practices and hiring more female employees and executives.
Disputes should be avoided
For Norcross, Georgia, business owners, shareholder disputes should be avoided at all costs because they often lead to business and commercial litigation. Disputes can also affect public sentiment and employee morale, which also affects the bottom line.