Electronic Arts 2010 Annual Report Download - page 34

EXECUTIVE COMPENSATION
COMPENSATION DISCUSSION AND ANALYSIS
This Compensation Discussion and Analysis describes our executive compensation program for fiscal 2010 and
the compensation decisions we made in fiscal 2010 for our:
• Chief Executive Officer, John S. Riccitiello,
• Executive Vice President, Chief Financial Officer, Eric F. Brown,
• Chief Operating Officer, John Schappert,
• President, EA Games, Frank D. Gibeau,
• President, EA SPORTS, Peter Moore, and
• Executive Vice President, Western World Publishing, Gerhard Florin
Collectively, these individuals are designated the named executive officers (“NEOs”). The compensation of the
NEOs is provided in the compensation tables that follow this discussion. For purposes of this Compensation
Discussion and Analysis, the term “NEO” excludes Dr. Florin, whose compensation arrangements with the
Company are described separately in the sections of this Compensation Discussion and Analysis titled
“Exchange Program” and “Executive Changes” below.
Fiscal 2010 Overview
The compensation of our executive officers in fiscal 2010 was influenced by two key facts:
• First, our executive officers delivered very well against critical strategic and operational objectives in
fiscal 2010, which included significant increases in digital revenues, the implementation of deep cost
reductions while still delivering games on-time and with improved quality, and the development of
critically-acclaimed new intellectual property, among others. Despite these significant operational and
strategic achievements, we did not fully meet our financial expectations for the year. Accordingly, our
compensation programs recognized numerous areas of outstanding performance, while also taking into
account the financial results.
• Second, we determined, based on market surveys and other data, that certain of our compensation
programs were below market levels for comparable executive roles. In particular, our equity and cash
bonus programs did not sufficiently reward executives for achievement of both qualitative and
quantitative goals.
To address these issues, the Executive Compensation and Leadership Committee (hereafter referred to in this
discussion as “the Committee”), with the advice and assistance of its independent compensation consultant,
Compensia, evaluated our compensation programs and philosophy in light of a rapidly changing compensation
landscape and industry-specific challenges. Based on that review, the Committee made selected mid-year
adjustments, discussed below, to the fiscal 2010 executive compensation program for our executive officers,
including the NEOs. We also adopted several changes to our executive compensation program for fiscal 2011,
discussed below, which are intended to link pay more appropriately to qualitative individual goals as well as to
Company financial objectives. The changes also serve to strengthen the retentive and motivational value of our
equity programs going forward.
Compensation Philosophy
We operate in an intensely competitive business environment characterized by the continual emergence of new
competitors and technologies and difficult-to-predict consumer tastes and preferences. Our success as a global
leader in the interactive entertainment industry depends heavily on attracting, motivating, rewarding and
retaining a highly-skilled and experienced management team.
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