Electronic Arts 2009 Annual Report Download - page 50

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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 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) savings
plan. Eligible employee-participants may defer receipt of up to 75% of their base salary until a date or dates they
specify. None of the Named Executive Officers participated in the DCP during fiscal 2009.
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 life
insurance, AD&D, and long-term disability insurance with greater maximum benefit levels, 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 life insurance, AD&D, and 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 above our general policy due to covered earnings caps.
Company-provided air and ground transportation is limited solely to business travel.
Relocation Assistance
We also provide certain benefits to our employees, including our executive officers, in connection with domestic
relocations, including home sale and purchase assistance, household goods and car shipment, travel, temporary
housing, car rental, storage, miscellaneous relocation allowance, house-hunting trips, and tax protection to offset
costs incurred by our executives as a result of these relocations. In fiscal 2009, Messrs. Brown, Pleasants, and
Moore received certain of these relocation-related benefits, which have been reported in the “All Other
Compensation” column of the “Summary Compensation Table” set forth below.
Post-Employment Arrangements
Change of Control Plan
From time to time, we may recruit executives from other companies where they have job security, tenure and
career opportunities. In accepting a position with us, an executive is often giving up his or her current job
stability for the challenges and potential risks of a new position. Through the Electronic Arts Inc. Key Employee
Continuity Plan (the “CoC Plan”), we mitigate the harm that the executive would suffer if he or she were
terminated by the Company for reasons beyond his or her control in conjunction with a change of control of the
Company. This type of severance benefit also allows existing executives to focus on the Company’s business
without being unduly distracted by concerns about their job security in the event of a change of control. Finally,
we expect that this benefit will act as an additional incentive for eligible participants to comply with their post-
termination covenants, such as the non-solicitation requirement described below, and confidentiality obligations.
The “CoC Plan” is a “double-trigger” change of control plan. Pursuant to the CoC Plan, any eligible employee,
including the Named Executive Officers, may receive certain benefits if his or her employment is terminated
either without “cause” (as defined in the CoC Plan) or if he or she resigns for “good reason” (as defined in the
CoC Plan) during the 12-month period following a change of control of the company or if his or her employment
is terminated “without cause” during the two-month period preceding a change of control of the company.
Eligible employees include all employees at the level of vice president and above.
The CoC Plan benefits include:
a cash severance payment based on a multiple of base salary and target bonus or annual incentive
opportunity;
continued health benefits for a period ranging from six to 18 months, depending on the executive’s
position with the Company; and
42