Electronic Arts 2010 Annual Report Download - page 40

• the development of critically-acclaimed game franchises that added new intellectual property to our
product portfolio;
• the implementation of the Company’s cost reduction program and the resulting cost savings in the
Company’s operating expenses;
• significant developments in the Company’s online, direct-to-consumer and wireless businesses; and
• extraordinary individual performance achievements in a difficult business environment.
Following from that overall funding, the Committee then determined the actual bonus payment of each NEO,
considering their achievement of individual objectives for which bonus targets have been established, and their
personal performance during fiscal 2010. Dr. Florin was not awarded a bonus for fiscal 2010.
The individual performance reviews for Messrs. Gibeau, Moore, Schappert and Brown were made by
Mr. Riccitiello, assisted by Ms. Toledano, and their performance was evaluated against their individual
performance objectives. The individual performance objectives for each NEO are described in more detail below
and involved highly individualized goals that are set for the executive officer by Mr. Riccitiello and
Ms. Toledano, including such strategic objectives as, business unit growth or profit related objectives, leadership
and intellectual capital. Though certain of these individual performance objectives were financial in nature, there
was no mathematical calibration of bonus payments to these financial objectives – rather, these objectives, like
the others, were evaluated on a qualitative basis.
With respect to Mr. Gibeau, the Committee awarded a cash bonus of $423,000, which reflects 77.6% of his base
salary. The factors that the Committee took into account in making this award included the delivery of high
quality games such as Battlefield: Bad Company 2, on-time product shipment objectives, the significant increase
in digital revenue as a percentage of the Games Label’s total revenue, and his successful implementation of cost
reductions throughout the EA Games Label. Under Mr. Gibeau’s leadership, the EA Games Label had no major
product shipment slips in fiscal 2010, successfully launched three new intellectual properties and the average
Metacritic score for products released during fiscal 2010 rose three points over the prior year.
With respect to Mr. Moore, the Committee awarded a cash bonus of $401,000 which reflects 71.0% of his base
salary. The factors that the Committee took into account in making this award included his achievements in
leading the EA SPORTS Label, which had noteworthy financial gains over the prior year, including a significant
increase in digital revenue, the launch of EA SPORTS Active as the most successful product released by EA for
the Nintendo Wii, the even-more-successful launch of FIFA 10, which hit an all time segment share high in the
soccer sector, and the repositioning of the EA SPORTS brand to reach new markets and audiences.
With respect to Mr. Schappert, the Committee awarded a cash bonus of $270,000, which is a pro-rated amount,
given Mr. Schappert’s June 2009 hire date, and reflects 45% of his base salary. The factors that the Committee
took into account in making this award included his successful leadership of our cost reduction program during
fiscal 2010, the reorganization of our Global Publishing Organization and online divisions, and leadership of
corporate development initiatives, including the acquisition of Playfish Ltd.
With respect to Mr. Brown, the Committee awarded a cash bonus of $315,000, which reflects 52.5% of his base
salary. The factors that the Committee took into account in making this award included his strong strategic and
operational leadership during fiscal 2010, including implementation of the cost reduction program, numerous
financial and operational systems and other process improvements.
With respect to Mr. Riccitiello, the Board, based on the Committee’s recommendation, awarded a cash bonus of
$746,667 which reflects 93.3% of his base salary. This payment was based on Mr. Riccitiello’s achievement of
his individual performance objectives and his target bonus opportunity for fiscal 2010. Mr. Riccitiello’s fiscal
2010 individual performance objectives included overseeing the Company’s achievement of specified revenue,
earnings per share and direct-to-consumer revenue targets, increasing the number of hit games within the top 30
chart position, gaining market share, establishing new intellectual property, increasing average game quality
ratings, and recruiting and retaining top leadership talent. Our Nominating and Governance Committee, with the
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