Krystal Hu

(Reuters) – Activision Blizzard Inc. (NASDAQ:), Chief Executive Officer Bobby Kotick is now preparing for a $390 million windfall.

After securing a Tuesday deal to sell Activision, the 58-year old executive will be able to take home the check. Microsoft Corp (NASDAQ) for $68.7 Billion. However, the largest portion of his $38.5 million Activision shares will go to him, as regulatory filings indicate.

The change of control payment will not be made to him because he has no unvested equities. That is an unusual situation for public CEOs.

A source close to the matter revealed that Kotick intends to leave after the Microsoft deal expires. It is anticipated that the deal will be closed in June 2023. He would have been reported to Phil Spencer (Microsoft’s chief gaming officer), if he had remained Activision CEO. This is a long way from managing a separate company.

Activision founder Kotick has been leading the firm since 1991. He made it one of the most successful videogame companies in the world. On Tuesday, CNBC interviewed Kotick and said that the company “resolved” sexual harassment allegations and discrimination claims that saw more than 20 employees fired.

Kotick and Activision spokespersons declined to comment.

Activision shares only narrowly approved Kotick’s $155 million salary package. Investors had criticised the company for giving Kotick one of the largest compensation packages in corporate America.

Activision reduced Kotick’s base pay and cash bonus 50%, and subjected 95% to his performance.

Activision also eliminated a “transformation award,” which would have paid Kotick an extra payout. The value of this payment would be decided in the future if the company was sold.

Kotick, who was facing charges of discrimination and sexual harassment at work, lowered his monthly salary to $62,500 in October. Kotick also stopped receiving bonuses and equities.