MS negotiated the agreement. So “allowed” seems like a fair description of the contents of a contract they negotiated and agreed to.
Without knowing all the details, I think it's fair to assume this is a fair approach. I'm sure there are all sorts of legal details to work through that make axing him immediately untenable. 3 months seems like a reasonable timeline.
Gotta love this "at will employment" for people doing work, and the "leaders" get to be an open and known sex pest and still manage to go home with huge checks.
Does Activision not have HR policies? If I sexually harassed my co-workers, you could bet I wouldn't get a golden parachute.