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Activision says it failed to hire another woman because of Microsoft Deal Complications

Activision Blizzard claims its violation of California law requires the company to be able to have at least three women on its board of directors in 2021 with Microsoft’s immediate acquisition and compliance with three years.

Axios noted that Activision Blizzard’s annual report for 2021 confirms that it has failed to comply with California law that requires at least six members of its board of directors to include at least three women in their boards by 2021. The company now has two women on a board of ten.

Activision Blizzard claims that it has failed to nominate a third woman to its board, which is expected to be delayed until 2023.

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“To meet this need and improve our board of directors’ diversity, the company retained a search company and began an investigation with 2021 of potential female directors. If the current directors of the company would cease to serve with Microsoft on a proposed transaction, we could make the final decision in 2021. We’re continuing our efforts to nominate a new female director.

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Notably, though, Activision Blizzard has known that it may need some time to comply with this law. The Law went into effect on January 1, 2019 and Activision Blizzard had two women on its ten-person board: Reveta Bowers and Elaine Wynn. Wynn departed the company in 2020. At that time, the company announced that a female woman, Dawn Ostroff, was the first to replace her. The company has not had a new member since Bowers had its first-year appointment in 2018.

The two deal with Activision Blizzard and Microsoft in mid-November 2021, just three days after The Wall Street Journal reported that the CEO of the company knew the allegations of sexual misconduct, but did not disclose them to the board of directors.

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Since the California law was in question, women have been in a dramatic increase in the number of women seeking an incumbent position. In the two years before the law was passed, only 208 women were elected to the office of California officials. In two years after the inauguration, 739 employees and the first quarter of 2021, women had 45% of California’s board meetings.

While this news comes from Activision Blizzard, a lawsuit filed by the state of California alleges that the company helped promote a “frat boy” culture in which women were subjected to unfair wages and a toxic working environment.

Activision Blizzard declined to comment further.

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