Electronic Arts 2008 Annual Report Download - page 40

For additional information about the Compensation Committee, see the section entitled “Board, Board
Meetings and Committees” set forth above in this proxy statement.
Compensation Consultants
The Committee has the authority to engage the services of outside advisors. During fiscal 2008, the Committee
engaged Compensia, Inc., a national compensation consulting firm, to assist with its analysis and review of the
compensation of our executive officers and other aspects of our total compensation strategy. Compensia also
advised the Committee with respect to the design and implementation of the Electronic Arts Executive Bonus
Plan.
Compensia works directly with the Committee Chair and Committee members and sends all invoices,
including descriptions of services rendered, to the Committee Chair for review and payment approval.
Compensia performed no work for our management during fiscal 2008.
From time to time, our management separately engages consulting services in connection with our compensa-
tion practices. In fiscal 2008, we retained Frederic W. Cook & Co. to assist management and the Committee
with a review of compensation levels for members of the Board, and Mercer Human Resources Consulting to
assist management and the Committee with a review of the Company’s Key Employee Continuity Plan.
Role of Management
Some of our executives are involved in formulating executive compensation recommendations for the
Committee and/or the Board. Ms. Gabrielle Toledano, our Executive Vice President of Human Resources, is
responsible for conducting an annual analysis of market trends, providing documentation of individual
executive performance, and creating initial recommendations of base salary adjustments, potential bonus
payments, and potential equity awards for our executive officers. To assist in the development of these initial
recommendations, our Human Resources Department participates in several comprehensive executive compen-
sation surveys, including the IPAS Technology Survey and the Radford High Technology Executive Compen-
sation Survey. Mr. Riccitiello reviews and provides input on these recommendations (except with respect to his
own compensation) prior to and during review by the Committee.
Ms. Toledano also oversees the preparation of the Committee’s meeting materials, works with the Committee
Chair to set the meeting agenda, and attends all Committee meetings. In addition, Mr. Riccitiello regularly
attends Committee meetings (except when his own compensation is being discussed).
Competitive Positioning
In fiscal 2008, at the direction of the Committee, Compensia conducted a comprehensive analysis of our
executive compensation program. This analysis was developed using data from the IPAS Technology and
Radford High Technology Executive Compensation surveys, as well as publicly-available compensation
information from a group of peer companies selected by our management with input from the Committee and
Compensia. For fiscal 2008, this group of peer companies was updated from the fiscal 2007 peer group to
(a) better focus on companies of comparable size, geographic markets, financial performance, and expected
growth rates and (b) place a greater emphasis on companies that compete with us for executive talent in the
media and entertainment industries.
The fiscal 2008 group of peer companies (the “Peer Group”) consisted of:
• Activision
• Adobe Systems
• Amazon
• eBay
• Hasbro
• IAC Interactive Corporation
• Intuit
• Liberty Media Corporation
• Lions Gate Entertainment
• Mattel
• Symantec
• Take-Two Interactive Software
• THQ
• Viacom
• Warner Music Group
• Yahoo!
26