Electronic Arts 2011 Annual Report Download - page 37

Proxy Statement
For fiscal 2011, we achieved a number of key financial, strategic and operational objectives including:
• improving our profitability by achieving the high end of our non-GAAP net revenue and earnings per
share guidance;
• increasing significantly our non-GAAP diluted earnings per share year-over-year;
• exceeding our digital net revenue goals;
• improving the quality of our titles by releasing 15 titles with Metacritic scores rated 80 or better; and
• leading our industry segment — EA was the number one publisher in the Western World in fiscal 2011
with 16 percent share in North America and 18 percent share in Europe.
These performance achievements led to a bonus payout for our NEOs (excluding Mr. Schappert) of 52 percent of
their aggregated maximum bonus for fiscal 2011 or 140 percent of their aggregated target for fiscal 2011,
reflecting the Company’s solid financial performance. The fiscal 2011 maximum bonus payout, target bonus
payout, and actual bonus payout for each of our NEOs were as follows:
FY 2011 Maximum
Bonus Payout
FY 2011 Target
Bonus Payout
FY 2011 Actual
Bonus Payout
Mr. Riccitiello ................... $2,400,000 $1,200,000 $1,600,000
Mr. Brown ...................... $1,800,000 $ 525,000 $ 700,000
Mr. Gibeau ...................... $1,800,000 $ 590,833 $1,180,000
Mr. Moore ...................... $1,800,000 $ 594,167 $ 580,000
Mr. Schappert .................... $1,800,000 $ 575,000 —
A detailed explanation of the criteria used by the Committee to determine the actual fiscal 2011 bonus awards for
each of our NEOs is provided below in the section titled “Individual NEO Compensation.” Mr. Schappert
resigned as Chief Operating Officer effective April 25, 2011 and was not awarded a bonus for fiscal 2011.
Principle 2 — Equity Compensation: Approximately 60 percent of each of our NEO’s (excluding
Mr. Schappert) compensation for fiscal 2011 was provided in the form of long-term equity awards – aligning the
interests of our NEOs with those of our stockholders. The fiscal 2011 equity awards granted to our NEOs were
time-based restricted stock units (“RSUs”). The three-year vesting terms of these awards are designed to ensure
that our NEOs focus on building sustainable stockholder value over the long-term.
For fiscal 2012, the Committee will provide a blend of performance-based and time-based equity awards to our
NEOs. This approach is intended to further tie NEO compensation to the Company’s stock performance, and
reflects the Committee’s belief that the Company’s continued operational and financial achievements will result
in a higher stock price. The performance-based RSUs granted in fiscal 2012 will vest based on the Company’s
total stockholder return relative to the performance of the companies in the NASDAQ-100 Index, an index of the
100 largest domestic and international non-financial securities listed on NASDAQ. Additional details regarding
this fiscal 2012 equity program are described below in the section titled “Compensation Programs and Plans.”
Principle 3 — Target Total Direct Compensation: We awarded total direct compensation to our NEOs for
fiscal 2011 that was consistent with market practices and each NEO’s role and experience. Total direct
compensation has three components: base salary, annual cash bonus, and equity awards. For fiscal 2011, the
Committee generally targeted the 50th to 75th percentile of the market range of comparable companies when
setting the base salaries and target bonus opportunities for our NEOs, and targeted the 75th percentile for equity
awards. While we generally target each of these compensation components at these levels, the actual base salary,
bonus, and equity compensation provided to each NEO may be above or below these levels and is determined
based on the Company’s financial performance, each NEO’s business unit financial (if applicable), strategic and
operational performance, market trends, and other factors unique to each individual, such as their role and
experience.
The Committee also considers the aggregate value of all three total direct compensation components, and
generally targets the 50th to 75th percentile of the market range for total direct compensation. When necessary for
retention, succession planning, or recognition of outstanding performance, the Committee may approve
exceptional compensation programs for select key executives that could result in target total direct compensation
above our target range.
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