Electronic Arts 2006 Annual Report Download - page 34
Download and view the complete annual report
Please find page 34 of the 2006 Electronic Arts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24 -
25 -
26 -
27 -
28 -
29 -
30 -
31 -
32 -
33 -
34 -
35 -
36 -
37 -
38 -
39 -
40 -
41 -
42 -
43 -
44 -
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
 |
 |
under the restricted stock and restricted stock unit awards to be granted in exchange for surrendered stock
options. In addition, we expect restricted stock and/or restricted stock units to remain an important form
of equity incentive compensation that we oÅer our employees worldwide, including, for example, as a
component of the Retention Awards program described in Proposal 2 above under which we intend to
grant restricted stock units to a select group of key employees. We therefore believe it is important that
the Equity Plan be amended to allow us to issue an adequate amount of restricted stock and restricted
stock units to attract, retain and motivate eligible employees and to provide the shares necessary for
awards to be granted in exchange for stock options surrendered in the Exchange Program.
We are also proposing to amend the Equity Plan to limit the number of shares subject to options
surrendered and cancelled in the Exchange Program that will again become available for issuance under
the Equity Plan to 7 million plus the number of shares necessary for the issuance of the restricted stock
rights to be granted in connection with the Exchange Program.
Under the existing terms of the Equity Plan, shares subject to awards that terminate without shares being
issued automatically become available for issuance under other awards granted pursuant to the Equity
Plan. In order to limit the number of shares that will be available for future issuance as a result of the
Exchange Program, however, we do not intend to return every share subject to an award cancelled in the
Exchange Program back to the Equity Plan. Instead, we only intend to (i) use shares subject to the
options cancelled for the issuance of the restricted stock rights granted under the Exchange Program, and
(ii) return up to a total of an additional seven million shares subject to the options cancelled in the
Exchange Program to the Equity Plan to be available for issuance pursuant to future awards. While
returning these shares back to the Equity Plan will not have any immediate impact on our overhang, their
use for future equity awards would increase our overhang.
Required Vote and Board of Directors' Recommendation
Approval of this proposal requires the aÇrmative vote of a majority of the voting shares present at the
meeting in person or by proxy and voting on this proposal.
The Board recommends a vote FOR the amendments to the 2000 Equity Incentive Plan.
22