Strauss Zelnick, the CEO of Take-Two Interactive has had his contract extended with the company and will remain the CEO of Take-Two Interactive until 2029.
According to Axios, the contract extension featured the listed role renewal and the details regarding Zelnick’s pay. It revealed that his pay in the coming years would be dependent on the performance of microtransactions within various games.
The contract extension also indicated that Karl Slatoff, the company president, will keep fulfilling that role until 2029.
According to the SEC filing notes, Zelnick will receive an annual bonus subject to the achievement of the company based on various performance metrics.
Among these are performance metrics related to recurrent consumer spending (RCS). This metric covers in-game transactions and virtual currency, and while this goal isn’t anything particularly new, it is worth noting that it was altered to gain increased benefits from RCS growth in the near future.
According to Take-Two themselves, the definition of the Recurrent Consumer Spending may include but is not limited to sales of virtual currency, video game add-ons, microtransactions, NFTs, and various other forms of subscriptions offered by the company itself, however, it doesn’t include full-game digital downloads.
According to Axios, Take-Two video games have generated more than $548 million solely via RCS during the last three months of 2021. According to the report, this is more than Take-Two made from selling full video games.
Axios also reported that both Zelnick and Slatoff made more than $31 million in stock through various performance incentives last year. $3.9 million of this total was driven by the firm managing to hit its own RCS targets.
