Electronic Arts 2008 Annual Report Download - page 45

In the case of Dr. Florin, the Committee approved: (i) in May 2007, (a) a stock option to purchase
35,000 shares of the Company’s common stock, vesting as to 24% of the shares on the first day of the
calendar month that includes the one-year anniversary of the option grant date, and as to an additional 2% of
the shares on the first calendar day of each month thereafter for 38 months, and (b) an RSU award of
5,000 shares, vesting as to 25% of the shares on each of the first four anniversaries of the grant date; and
(ii) in August 2007, 20,000 RSUs, vesting as noted above.
In the case of Mr. Gibeau, the Committee approved: (i) in May 2007, (a) a stock option to purchase
35,000 shares of the Company’s common stock, vesting as to 24% of the shares on the first day of the
calendar month that includes the one-year anniversary of the option grant date, and as to an additional 2% of
the shares on the first calendar day of each month thereafter for 38 months, and (b) an RSU award of
5,000 shares, vesting as to 25% of the shares on each of the first four anniversaries of the grant date; and
(ii) in August 2007, (a) a stock option to purchase 100,000 shares of the Company’s common stock, vesting as
described above, and (b) 20,000 RSUs, vesting as noted above.
Mr. Riccitiello’s equity award for fiscal 2008 was established as part of the terms of his initial employment
when he was appointed Chief Executive Officer, effective April 2, 2007. The Committee recommended to the
Board, and the Board determined, that Mr. Riccitiello’s initial equity award, in connection with his
appointment as Chief Executive Officer, consist solely of stock options.
Equity Awards Grant Practices
All stock options granted to the Named Executive Officers in fiscal 2008 were granted at the fair market value
(i.e., the closing price) of the Company’s common stock on the date of grant and vest as described in the
Grants of Plan-Based Awards Table set forth below. RSU awards granted in fiscal 2008 to the Named
Executive Officers vest as described in the footnotes to the Summary Compensation Table set forth below. All
equity awards granted to executive officers were approved by the Committee in advance of the grant date and
were made on the 16th of the month in which they were granted (or on the next NASDAQ trading day
thereafter if the 16th of the month fell on a Saturday, Sunday, or holiday).
The Committee has delegated limited authority for determining and approving equity grants for non-executive
employees, consisting of pre-defined size limits and vesting schedules, to a committee consisting of
Mr. Riccitiello and Ms. Toledano, which we refer to as the “Management Committee.” The Management
Committee is generally responsible for all equity awards to employees below the Senior Vice President level,
up to an annual grant limit of stock options to purchase 30,000 shares and 10,000 RSUs. The Management
Committee reports on its activities to the Committee on at least an annual basis.
Benefits and Retirement Plans
We provide a comprehensive benefits package to all of our regular, full-time employees, including the Named
Executive Officers, which includes medical, dental, prescription drug, vision care, disability insurance, life
insurance, a flexible spending plan, a tax-qualified Section 401(k) savings plan (or, in the case of Dr. Florin, a
defined contribution plan for which all of the Company’s Swiss employees are eligible), an educational
reimbursement program, an employee assistance program, an employee stock purchase plan, and holidays and
personal time off, including vacation, sick, or personal days off.
We do not offer a retirement plan to our executive officers, including the Named Executive Officers, other
than through participation in our tax-qualified Section 401(k) savings plan we offer to all eligible employees
or a comparable savings plan in locations outside of the United States.
We maintain a nonqualified deferred compensation plan (the “DCP”) that allows certain employees, including
the Named Executive Officers, and our directors to defer receipt of their base salary and annual cash bonus or
director fees, as the case may be, into cash accounts that mirror the gains and/or losses of a variety of different
investment funds. These investment funds correspond to the funds that we offer to participants in the tax-
qualified Section 401(k) plan. Eligible employee-participants may defer receipt of up to 75% of their base
salary and up to 100% of their bonus and/or commissions until a date or dates they specify. We are not
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