Electronic Arts 2008 Annual Report Download - page 46

required to make any contributions to the DCP and did not do so in fiscal 2008. None of the Named Executive
Officers participated in the DCP during fiscal 2008.
Perquisites and Other Personal Benefits
Historically, we believe we have taken a conservative approach with respect to providing perquisites and other
personal benefits to our executive officers, including the Named Executive Officers. While our executive
officers generally receive the same benefits that are available to our other regular, full-time employees, they
also receive certain other benefits, including access to a company-paid executive physical program, company-
paid supplemental long-term disability insurance, and paid parking at locations where free parking is not
available. We consider these benefits to be standard components of a competitive executive compensation
package. In the case of the supplemental long-term disability insurance, our primary objective is to provide the
same level of coverage as is available to all other regular, full-time employees but that is limited under our
general policy due to covered earnings caps. In addition, company-provided air and ground transportation is
limited solely to business travel.
We also provide certain benefits in connection with international and domestic assignments and relocations,
including a housing allowance, a car allowance, and tax protection to offset costs incurred by our executives
as a result of these assignments. In fiscal 2008, Dr. Florin and Mr. Moore received certain of these
assignment-related benefits, which have been reported in the All Other Compensation column of the Summary
Compensation Table set forth below.
Executive Changes
Appointment of New Chief Executive Officer
In February 2007, we entered into an agreement with Mr. Riccitiello, under which he was appointed as our
Chief Executive Officer, effective April 2, 2007. Taking into consideration Mr. Riccitiello’s prior association
with the Company as well as his more recent experience, the Committee viewed him as an individual with the
requisite experience, skills, and acumen needed to assume this role. Accordingly, the Committee developed a
total compensation package that it considered to be competitive for the chief executive officer of a large
interactive entertainment company. At the same time, the Committee was sensitive to the need to integrate
Mr. Riccitiello into our existing executive compensation structure, balancing both competitive and internal
equity considerations.
Ultimately, the Committee settled on an employment offer comprising two principal pay components: regular
ongoing and annual cash compensation and an equity award. The annual cash component was designed to be
consistent with the Company’s compensation philosophy that a significant portion of cash compensation
should be at risk and dependent on the Company’s financial and operational performance and the executive’s
individual performance. The equity component, which is reflected below, was designed to ensure that
Mr. Riccitiello received a long-term incentive that was appropriate for his role and responsibilities as Chief
Executive Officer.
The material terms of Mr. Riccitiello’s compensation package in connection with his appointment as Chief
Executive Officer of the Company were as follows:
• An annual base salary of $750,000;
• A target bonus opportunity equal to 100% of his annual base salary; and
• A stock option to purchase a total of 850,000 shares of the Company’s common stock subject to the
following vesting requirements:
• An option to purchase 300,000 shares, vesting as to 24% of the shares on April 1, 2008, and then
vesting in additional 2% increments on the first calendar day of each month thereafter for the
following 38 months;
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