Electronic Arts 2010 Annual Report Download - page 45

Proxy Statement
(determined under applicable accounting rules) associated with the continued vesting of these restricted stock
units was included in Dr. Florin’s total compensation for fiscal 2010. As a result of the accounting and SEC rules
regarding the reporting of those restricted stock units and other compensation he will receive resulting from the
termination agreement, Dr. Florin was one of our NEOs for fiscal 2010.
Equity Awards Grant Practices
Equity awards granted to executive officers were approved by the Committee in advance of the grant date and
were made on the 16th of the month in which they were granted (or on the next NASDAQ trading day thereafter
if the 16th of the month fell on a Saturday, Sunday, or holiday), with the exception of the equity award granted to
Mr. Riccitiello on May 18, 2010, which was approved by the Board. The Committee has delegated limited
authority for determining and approving equity grants for senior executives (other than executive officers), vice
presidents and other non-executive employees, with pre-defined size limits and vesting schedules, to a committee
consisting of Mr. Riccitiello and Ms. Toledano, which we refer to as the “Management Committee”. The
Management Committee reports on its activities to the Committee on at least an annual basis.
Compensation Recovery
In July 2009, the Committee adopted a “clawback” provision to be included in all equity award agreements on a
prospective basis. If an employee engages in fraud or other misconduct that contributes to an obligation to restate
the Company’s financial statements, this provision allows the Committee to terminate the equity award and
recapture any equity award proceeds received by the employee within the twelve-month period following the
public issuance or filing of the financial statements required to be restated.
Benefits and Retirement Plans
We provide a comprehensive benefits package to all of our regular, full-time employees, including the NEOs,
which includes medical, dental, prescription drug, vision care, disability insurance, life insurance, accidental
death and dismemberment (AD&D) insurance, a flexible spending plan, business travel accident insurance, a
tax-qualified Section 401(k) savings plan (or in the case of Dr. Florin, a defined contribution plan for which all of
the Company’s Swiss employees are eligible), an educational reimbursement program, an adoption assistance
program, an employee assistance program, an employee stock purchase plan, certain paid holidays and personal
time off, including vacation, sick, or personal days off.
We do not offer a retirement plan to our executive officers, including the NEOs, other than through participation
in the tax-qualified Section 401(k) savings plan we offer to all eligible employees or a comparable savings plan
in locations outside of the United States. All participants in the Section 401(k) savings plan are eligible to receive
a matching Company contribution of up to 6% of their base salary, depending upon the Company’s financial
performance for the fiscal year. The matching Company contributions to our NEOs for fiscal 2010 are reported in
the “All Other Compensation” column of the “Summary Compensation Table” set forth below.
We maintain a nonqualified deferred compensation plan (the “DCP”) that allows certain employees, including
the NEOs, 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 NEOs made salary deferrals under the DCP during fiscal 2010. During fiscal 2010, Mr. Schappert received
a distribution from his DCP account for base salary and bonus deferrals made during calendar years 2002 through
2007, when he was not an NEO of the Company, as reported in the Nonqualified Deferred Compensation Table
set forth below.
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 NEOs. 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 physical examination program, company-paid life insurance,
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