While reading filings with the U.S. Securities and Exchange Commission doesn’t sound exciting, it can reveal fascinating information. In Activision’s latest filings with the SEC, Activision presented the detailed merger agreement between it and Vivendi to combine their game operations. Save certain additional technical details, the merger is the same as was broadly previously described. However, Activision also had to file the revised employment agreements with certain key executives, so we get to see exactly how much Robert Kotick will be paid to lead the combined company.

In the new contract, signed on December 1, Kotick agreed to a salary of $950,000 per year, and is expected to receive an annual bonus of just under $2 million dollars if the company meets certain performance targets. But that’s hardly all. In addition to the usual benefits for Activision executives, Kotick will receive a lot of stock and options. On December 5, Kotick got 1.85 million options to purchase Activision stock at the price of $26.58 per share (slightly lower than the merger price). Those options will vest (he’ll actually own them) gradually over the next five years. Furthermore, when the merger is completed, Kotick will get 1.25 million shares of the company’s stock (that will vest over four years). And of course, if Kotick loses his position he will get enormous financial benefits.

Do you think around $3 million per year (plus tens of millions of dollars of options and shares) are a fair price for Kotick’s expertise, contacts and experience?