Electronic Arts 2007 Annual Report Download - page 45

In May 2006, in light of EA’s fiscal year performance and based on a recommendation from the Compensation
Committee, our Board of Directors decided not to award a cash bonus to Mr. Probst for fiscal 2006
performance.
In May 2007, based on a recommendation from the Compensation Committee, our Board of Directors decided
to award a $993,517 cash bonus based on (i) EA’s fiscal 2007 performance, as described above, (ii) Mr. Probst’s
achievement of specific performance goals in fiscal 2007, and (iii) Mr. Probst’s bonus target of 100% of his
base salary. In addition, based on a recommendation of the Compensation Committee, the Board of Directors
reduced Mr. Probst’s salary to $367,426 to reflect his ongoing responsibilities as Chairman of the Board
following his retirement as Chief Executive Officer.
Warren C. Jenson — Chief Financial and Administrative Officer
In February 2006, the Compensation Committee reviewed and approved the following compensation actions
for Mr. Jenson:
• A merit salary increase of 3.5% to $569,400
• A stock option to purchase 52,500 shares, which vests as to 24% on the first anniversary of February 1,
2006 and then 2% monthly thereafter
• A restricted stock unit award of 7,500 shares, which vests as to 25% of the shares on each of the first
and second anniversaries of the grant date, and 50% of the shares on the third anniversary
In May 2006, in light of EA’s fiscal year performance, the Compensation Committee decided not to award a
cash bonus to Mr. Jenson for fiscal 2006.
In May 2007, the Compensation Committee reviewed and approved for Mr. Jenson a $637,226 cash bonus
based on (i) EA’s fiscal 2007 performance, as described above, (ii) Mr. Jenson’s achievement of specific
performance goals in fiscal 2007, and (iii) Mr. Jenson’s bonus target of 75% of his base salary.
In June 2002, we hired Mr. Jenson as Chief Financial and Administrative Officer. As part of our efforts to
recruit Mr. Jenson, we agreed to loan him $4 million, to be forgiven over four years based on his continuing
employment. The loan did not bear interest. The loan was made prior to enactment of the Sarbanes-Oxley Act
of 2002 and its prohibition on loans to executive officers. The Compensation Committee did review this
proposed arrangement in light of the then-current environment and sensitivity to transactions with management
and determined the environment for recruiting highly regarded and talented chief financial officers was, and
has been, intensely competitive, and the Compensation Committee believed that a competitive compensation
offer tied to continuing service was in EA’s best interests and significantly more beneficial to the Company
than unrestricted cash payments. In June 2004, pursuant to the terms of his offer letter and the loan agreement,
we forgave $2 million of the loan and provided Mr. Jenson approximately $1.6 million to offset the tax
implications of the forgiveness. The remaining outstanding loan balance of $2 million was forgiven on June 24,
2006. No additional funds were provided to Mr. Jenson to offset the tax implications of the forgiveness of the
remaining $2 million.
In connection with our recruitment of Mr. Jenson, we also agreed to pay certain relocation-related costs. In
fiscal 2007, we paid a total of $68,143 on behalf of Mr. Jenson in relocation-related costs, including storage
and shipping of household goods and the related tax gross-up.
Paul Lee — President, Worldwide Studios
In February 2006, the Compensation Committee reviewed and approved the following compensation actions
for Mr. Lee:
• A merit salary increase of 3.5% to $591,983
• A stock option to purchase 52,500 shares, which vests as to 24% on the first anniversary of February 1,
2006 and then 2% monthly thereafter
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