Electronic Arts 2010 Annual Report Download - page 49

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Proxy Statement
In fiscal 2010, the compensation paid to Messrs. Riccitiello, Schappert, Moore, and Gibeau exceeded the
Section 162(m) deductibility threshold by approximately $200,000, $1,920,000, $615,000, and $415,000,
respectively. Mr. Schappert’s compensation for purposes of Section 162(m) included his signing bonus,
relocation-related benefits, and deferred compensation payments. Dr. Florin was considered a covered employee
during fiscal 2010; however, his compensation was not deductible in our U.S. Corporation Income Tax Return
because he was employed outside of the United States and paid by a foreign subsidiary.
While the Committee will continue to consider deductibility under Section 162(m) with respect to future
compensation arrangements with our executive officers, deductibility will not be the only, or necessarily the
primary, factor in determining appropriate levels or modes of compensation. Since corporate objectives may not
always be consistent with the requirements for full deductibility, it is possible that we may, if consistent with our
compensation philosophy, enter into compensation arrangements in the future under which payments are not
fully deductible under Section 162(m).
Accounting for Stock-Based Compensation
We account for stock-based compensation awards in accordance with the applicable accounting standard related
to stock-based compensation. The comparable compensation expense of restricted stock units and stock options
under this standard has removed a financial reporting disincentive to use restricted stock units that existed before
we began expensing stock options under this standard. As such, we use restricted stock units for all employee
groups, including our executive officers.
COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION
The following Compensation Committee Report on Executive Compensation shall not be deemed to be
“soliciting material” or to be “filed” with the Securities and Exchange Commission nor shall this information
be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the
Securities Exchange Act of 1934, as amended, except to the extent that EA specifically incorporates it by
reference into a filing.
The Committee has reviewed and discussed with management the Compensation Discussion and Analysis. Based
on its review and discussions with management, the Committee recommended to our Board of Directors that the
Compensation Discussion and Analysis be included in this proxy statement.
COMMITTEE MEMBERS
Geraldine B. Laybourne (Chair)
Leonard S. Coleman
Linda J. Srere
41