Electronic Arts 2007 Annual Report Download - page 47

In August 2006, the Compensation Committee reviewed and approved the following compensation actions for
Mr. Lasky:
• A stock option to purchase 70,000 shares, which vests as to 25% of the shares on each of the first,
second, third and fourth anniversaries of July 1, 2006
• An RSU award of 10,000 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 September 2006, Mr. Lasky was promoted to Executive Vice President of EA Mobile. In connection with
his promotion, the Compensation Committee reviewed and approved the following compensation actions for
Mr. Lasky:
• A promotional salary increase of $25,000 to $450,000 effective September 4, 2006
• An increase of Mr. Lasky’s target bonus to 60% of his base salary
• A stock option to purchase 70,000 shares, which vests as to 50% of the shares on the second
anniversary of September 18, 2006 then an additional 25% on each of the third and fourth anniversaries
• An RSU award of 10,000 shares, which vests as to 50% of the shares on the second anniversary of the
grant date and 25% of the shares on each of the third and fourth anniversaries
In May 2007 the Compensation Committee reviewed and approved for Mr. Lasky a $352,365 cash bonus
based on (i) EA’s fiscal 2007 performance, as described above, (ii) Mr. Lasky’s achievement of specific
performance goals in fiscal 2007, and (iii) Mr. Lasky’s bonus target of 60% of base salary.
At the time of our acquisition of JAMDAT, Mr. Lasky held a number of shares of unvested JAMDAT restricted
stock. In accordance with the terms of the acquisition agreement we entered into with JAMDAT, Mr. Lasky’s
shares of restricted stock were cancelled and automatically converted into rights to receive $27.00 per share,
subject to the same terms and conditions that had been applicable to the restricted stock immediately prior to
the acquisition, including vesting schedules and repurchase rights. As such, we were required to pay $27.00
for each share of JAMDAT restricted stock that was cancelled but would have vested as a result of Mr. Lasky’s
continued employment with EA following the acquisition. In fiscal 2007, we paid Mr. Lasky a total of
$1,437,048 for cancelled shares of JAMDAT restricted stock.
Effective April 2, 2007, Mr. Lasky resigned from EA.
EMPLOYMENT AGREEMENTS, CONTINGENT COMPENSATION AND OTHER MATTERS
Change of Control, Arrangements
We have not entered into any arrangements with the Named Executive Officers that provide for any benefits in
connection with a change of control of EA.
Severance Arrangements
On September 26, 2006, in connection with his relocation to Geneva, Switzerland, we entered into an
agreement with Dr. Florin setting forth the terms and conditions of his employment. The agreement provides
for (i) a notice period of six months in the event of termination of Dr. Florin’s employment (other than for
gross misconduct on the part of Dr. Florin); (ii) a redundancy payment of 16 weeks salary (determined by the
number of years of Dr. Florin’s previous service to the Company according to EA’s standard policy regarding
the calculation of redundancy payments) in the event that Dr. Florin is made redundant (i.e., the Company no
longer requires the services for which Dr. Florin is employed, or his position is relocated to another EA entity)
within 3 years after the effective date of the agreement; and (iii) payment of air fare and relocation of
household goods for Dr. Florin and his family back to the UK in the event that Dr. Florin is made redundant
within 2 years after the effective date of the agreement.
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