Electronic Arts 2007 Annual Report Download - page 44

All stock options granted to the Named Executive Officers in fiscal 2007 were made at fair market value on
the date of grant and vest as described in the “Fiscal 2007 Grants of Plan-Based Awards Table” below. RSU
awards granted in fiscal 2007 to the Named Executive Officers vest as described in the footnotes to the
Summary Compensation Table below.
Personal Benefits and Perquisites
We believe we have taken a conservative approach with respect to our use of executive perquisites and other
personal benefits. Our executive officers receive the same benefits package that is available to other regular
full time employees of the company. In addition, all executive officers, including our Named Executive
Officers, have access to a company-paid executive physical program, receive company-paid supplemental long
term disability insurance, and receive paid parking at locations where free parking is not available. We
consider these programs to be standard components of a competitive executive total compensation package.
For the supplemental long-term disability insurance, the primary goal is to provide the same level of coverage
as is available to all other employees but is limited in the general policy due to covered earnings caps.
We do provide certain additional benefits and perquisites related to international and domestic assignments and
relocations, including housing allowance, car allowance and tax protection to offset costs incurred by executive
officers associated with his or her assignment. In fiscal 2007, Dr. Florin was the only Named Executive Officer
to receive assignment-related benefits and perquisites, which are reflected in the Fiscal 2007 Summary
Compensation Table below.
Retirement and Other Benefits
We do not offer a retirement plan to our executive officers other than through participation in the defined
contribution plans we offer to all eligible employees.
We maintain a Deferred Compensation Plan (“DCP”) that allows directors and certain employees, including
our Named Executive Officers, to defer receipt of their salary into cash accounts that mirror the gains and/or
losses of several different investment funds which correspond to the funds we have selected for our 401(k)
plan. Participants may defer up to 75% of their salary and up to 100% of their bonuses and/or commissions
until the date(s) they have specified. We are not required to make any contributions to the DCP and did not do
so in fiscal 2007. None of our Named Executive Officers participated in the DCP during fiscal 2007.
FISCAL 2007 COMPENSATION
For fiscal 2007, the Compensation Committee reviewed and, where appropriate, adjusted executive base salary,
reviewed and approved cash bonus awards, and reviewed and approved annual equity compensation grants at
its February 2006 meeting. In an effort to retain and motivate a select group of key employees, including
certain executive officers, in June 2006, our Compensation Committee approved the Retention Award Program
pursuant to which equity awards were granted on August 16, 2006, the first regular grant date following our
earnings release for the quarter ended June 30, 2006.
For fiscal 2008, the Compensation Committee reviewed and, where appropriate, adjusted executive base salary,
reviewed and approved cash bonus awards, and reviewed and approved equity compensation grants at a
meeting held in May 2007.
Lawrence F. Probst III — Chief Executive Officer during fiscal 2007
Mr. Probst served as our Chief Executive Officer through the end of fiscal 2007.
In February 2006, based on a recommendation from the Compensation Committee, our Board of Directors
(i) approved a market-based salary adjustment of 3.5% for Mr. Probst, increasing his salary to $734,850, and
(ii) awarded a stock option to purchase 225,000 shares, which vests as to 24% on the first anniversary of
February 1, 2006 and then 2% monthly thereafter.
33
Proxy Statement