Electronic Arts 2009 Annual Report Download - page 45

Proxy Statement
Base Salary
We believe that a competitive base salary is the essential foundation to providing an attractive total compensation
package for our executives. Typically, base salaries are initially set to reflect an executive officer’s position,
responsibilities, and experience with subsequent adjustments based largely on individual performance and other
factors as described below.
The Committee reviews and approves the base salaries for our executive officers, including the Named Executive
Officers, as part of its annual compensation review, considering a number of factors, including the position’s
complexity and level of responsibility, the position’s importance in relation to other executive positions, and an
assessment of the executive’s performance. As previously described, Mr. Riccitiello, assisted by Ms. Toledano,
annually performs an individual performance review for each executive officer, which is then provided to the
Committee. The Nominating and Governance Committee of the Board, with the assistance of Ms. Toledano,
reviews Mr. Riccitiello’s performance, which review is then provided to the Committee. In addition, as noted
above, the Committee considers the third quartile of base salaries as reflected in the survey data and Peer Group
information.
From time to time, the Committee may review and adjust the base salaries of certain executive officers at its
discretion, including upon a change in an executive’s role or responsibilities and to ensure internal pay equity
with other executive officers at a comparable level in the Company. During its May 2008 compensation review,
the Committee decided to adjust the base salaries of certain of our executive officers, including certain of the
Named Executive Officers, for fiscal 2009. For those Named Executive Officers receiving base salary
adjustments, the increases were 6.1% in the aggregate. Our non-executive employees received base salary
adjustments of 4.8% in the aggregate.
Accordingly, during fiscal 2009, the Committee increased Mr. Riccitiello’s base salary by 6.7% to $800,000;
Mr. Gibeau’s base salary by 9.0% to $545,000; and Mr. Moore’s base salary by 2.7% to $565,000. Mr. Brown’s
base salary was set at $600,000 when he was appointed Chief Financial Officer, effective April 14, 2008.
Mr. Pleasant’s base salary was set at $600,000 when he was appointed President, Global Publishing & Chief
Operating Officer.
The Committee recommended the increase in Mr. Riccitiello’s base salary, which was approved by the Board,
based on their desire to position his base salary closer to a competitive level relative to similar positions in the
Peer Group and an evaluation of his individual performance. In determining the base salary increases for
Mr. Gibeau and Mr. Moore, the Committee considered the competitive salary levels of similar positions in the
Peer Group, as well as internal comparisons and their individual performance.
During May 2009, the Committee decided not to increase the base salaries of our executive officers, including
the Named Executive Officers, for fiscal 2010. The Committee’s decision was consistent with the Company’s
decision not to make base salary adjustments for other executives and employees for fiscal 2010 as part of the
Company’s cost reduction program.
Annual Cash Bonus
As discussed above in “Compensation Philosophy” one of the two basic tenets of our compensation philosophy is
that a significant portion of each executive officer’s total cash compensation should be performance-based and
“at risk”. With this in mind, we use cash incentives to deliver competitive total cash compensation to our
executive officers that is linked to the achievement of both the Company’s annual financial objectives and
individual performance objectives and, for those employees with direct responsibility for the development or
publishing of products, business unit performance. For fiscal 2009, the Committee reviewed and approved target
bonus opportunities (expressed as a percentage of base salary) for each executive officer, including the Named
Executive Officers, intended to deliver target total cash compensation (base salary plus target bonus opportunity)
in the third quartile of annual incentive compensation as reflected in the survey data and Peer Group information.
Mr. Riccitiello’s target bonus opportunity for fiscal 2009, which was 100% of his base salary, was determined to
be competitive relative to other chief executive officers of the companies in the Peer Group.
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