Strauss Zelnick will serve as Take-Two CEO until 2029
Strauss Zelnick has been Take-Two’s chairman, CEO, and largest individual shareholder since 2007. Take-Two is also the parent company of Rockstar Games and 2K Games and has a very large influence in the game industry. According to Axios, Strauss Zelnick’s tenure as CEO of Take-Two will be extended, with a new contract until 2029, along with changes to the bonus sharing terms.
Strauss Zelnick. Photo: Patrick T. Fallon/Bloomberg via Getty Images
In a large company like Take-Two, it is common for the CEO’s contract to have performance bonuses and incentive clauses, which to a certain extent reflect the company’s attitude towards future development and the direction it expects. In Strauss Zelnick’s new contract, the amount of the bonus will be linked to “recurrent consumer spending (RCS).” According to Take-Two’s official filing with the SEC, the definition of “recurring consumer spending” includes additional content, in-game items, in-game currency, and NFTs.
It is reported that if the “recurrent consumer spending” of Take-Two’s revenue meets the requirements, Strauss Zelnick will be able to receive millions of dollars in incentives. Last year, Strauss Zelnick and company president Karl Slatoff received more than $31 million in performance awards, including $3.9 million for meeting expectations on RCS. In the final quarter of 2021, Take-Two’s games grossed $548 million in “recurring consumer spending”, even more than game sales.
