Electronic Arts 2007 Annual Report Download - page 48

Retirement
The Company has implemented a special retirement provision related to the exercise of outstanding vested stock
options after a qualifying termination of employment. All employees, including our Named Executive Officers,
are eligible for this provision. Normally, an employee has three months after employment terminates to exercise
their stock options that were vested on their termination date. After three months, those options expire.
For an employee or director whose length of service plus age equals 60, and whose length of service is at
least 10 years, a retirement provision applies that allows exercise of stock options that were vested on their
termination date for a period up to 60 months after their termination of employment.
Dr. Florin participated in an executive defined contribution plan in the United Kingdom during the first half of
fiscal 2007, which allowed him to make larger contributions into his plan than he would have been able to
make under the standard employee plan, which has a cap on contributions. Under the executive plan, Dr. Florin
was able to contribute up to 5% of his salary, which is the same maximum contribution rate used by
employees under the standard plan, and the Company contributed 7% of his salary, which is the same
contribution rate used for Company contributions under the standard plan for employees contributing at the
5% level. Dr. Florin currently participates in a defined contribution plan in Switzerland for which all of the
Company’s Swiss employees are eligible.
Non-competition Agreements
As part of our acquisition of JAMDAT Mobile Inc. on February 15, 2006, we entered into a non-competition
agreement with Mr. Lasky, which provided that, for a period of three years, Mr. Lasky would not: (i) participate
in any business that engages in the development and distribution of downloadable wireless entertainment
applications for mobile telephone devices carried on by JAMDAT at the time of the acquisition, including,
without limitation, games for use on mobile telephones and other handheld mobile devices; (ii) induce any EA
employee to terminate employment with EA to accept employment in any business that engages in the
activities described in clause (i), or (iii) solicit EA employees for employment.
Dr. Florin’s employment agreement contains the following restrictions: (i) a six-month period following the
termination of Dr. Florin’s employment during which he is prohibited from soliciting or providing goods or
services to, in competition with EA, certain customers of EA, (ii) a six-month period following the termination
of Dr. Florin’s employment during which he is prohibited from contracting with or engaging, in competition
with EA, certain suppliers of EA; (iii) a six-month period following the termination of Dr. Florin’s
employment during which he is prohibited from employing, or engaging or offering employment to certain
employees of EA; and (iv) a six-month period following termination of Dr. Florin’s employment during which
he is restricted from competing with EA in Switzerland.
Executive Ownership Requirements
In fiscal 2004, the Board of Directors implemented EA stock ownership requirements for all Section 16
executive officers. These ownership requirements are based on multiples of the executive’s base pay, ranging
from one to six times the executive’s annual salary depending on the executive’s level within the organization.
In some cases, the ownership requirements are phased in on the basis of the executive’s tenure. The
Compensation Committee monitors these ownership guidelines and believes they further align the interests of
EA’s stockholders and executives. As of March 31, 2007, each of EA’s executives had either met their then-
applicable stock ownership requirements or had not yet reached the date on which they are required to meet
their ownership requirements.
Trading Policy
We have a policy designed to promote compliance by all EA personnel with insider trading laws. Under the
policy, certain employees (including all executive officers) who regularly have access to material, non-public
information are prohibited from buying or selling EA common stock during periods when EA’s trading
window is closed (unless such transactions are made pursuant to a pre-approved 10b5-1 trading plan). When
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Proxy Statement