Electronic Arts 2010 Annual Report Download - page 46

AD&D insurance, 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 officer compensation package. In the case of the life insurance, AD&D insurance, 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-
reimbursed air and ground transportation is restricted to business travel.
Relocation Assistance
We 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 executive officers as a result of these relocations. In fiscal 2010, Messrs. Brown, Schappert
and Dr. Florin 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.
Executive Changes
In November 2009, our Swiss subsidiary entered into a termination agreement (the “Termination Agreement”)
with Dr. Florin to amend the terms of his Contract of Employment dated September 26, 2006. Pursuant to the
Termination Agreement, Dr. Florin’s employment agreement will end on December 31, 2010 (the “termination
date”). Until the termination date, Dr. Florin will remain an employee of the company. From November 2009
until March 31, 2010, Dr. Florin continued to receive his then-current base salary and other benefits available to
executive officers in similar positions. Beginning April 1, 2010 and ending on the termination date, Dr. Florin’s
compensation was modified to be a monthly salary of approximately $15,000 plus relevant health and pension
insurance contributions and continued vesting of his restricted stock unit and stock option awards until the
termination date. In exchange, Dr. Florin relinquished his right to any additional compensation, released any
claims he may have had against the Company and agreed not to work for a competitor of the company for a
period of 12 months from the termination date.
Post-Employment Arrangements
Change of Control Plan
From time to time, we may recruit executive officers from other companies where they have job security, tenure
and career opportunities. In accepting a position with us, an executive officer 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 seek to mitigate the harm that the executive officer 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 executive officers 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 executive officers 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, executive officers,
including the NEOs, may receive certain benefits if their employment is terminated either without “cause” (as
defined in the CoC Plan) or if they resign for “good reason” (as defined in the CoC Plan) during the 12-month
period following a change of control of the company or if their 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 officer’s
position with the Company; and
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