Take-Two, the parent company of GTA developer Rockstar Games, has announced it has extended CEO Strauss Zelnick's contract through 2029. Under the terms of his new deal, Zelnick could earn more in bonuses if the company can continue to grow its microtransaction business.
The fact that an executive's pay is tied to a performance-based metric is not uncommon in the technology space. For example, Microsoft CEO Satya Nadella's contract has a clause that lets him earn more money when more people sign up for Xbox Game Pass. These types of performance-based incentives are offered to executives in an attempt to motivate them to maximize returns for shareholders (and enrich themselves, too, in the process).
A filing with the Securi ties and Exchange Commission says Zelnick could earn an additional "performance award" of more stock units if Take-Two can reach a certain "operational performance metric" pertaining to recurrent consumer spending (RCS).
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