This excerpt taken from the ATVI DEF 14A filed Jul 30, 2007.
Importance of Equity-Based Compensation
The Board believes that the ability of the Company to utilize equity-based compensation as a meaningful component of its compensation programs is critically important for the continued success of the Company. The principal factors shaping the Board's view in this regard are as follows:
The Board believes that the following charts support statistically the favorable impact of the Company's historical use of equity-based compensation on the Company's growth and stockholder value. As these charts illustrate, (1) the Company has had an increase in its annual net revenue from $572 million in fiscal 2000 to $1.5 billion in fiscal 2007, reflecting a compound annual growth rate of 15%, (2) the Company has had a cumulative total stockholder return on the Common Stock such that $100,000 invested in the Common Stock on March 31, 2000 would have grown to approximately $942,000 on March 31, 2007, based on the closing market price of Common Stock as reported on the Nasdaq on March 30, 2007, and (3) the Company has had an increase in shareholders' equity from $141 million at the end of fiscal 2000 to $1.4 billion at the end of fiscal 2007, reflecting a compound annual growth rate of 39%.