Electronic Arts 2011 Annual Report Download - page 40

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Mr. Riccitiello
FY 2011 ($) FY 2010 ($) Change (%)
Base Salary .............................. $ 800,000 $ 800,000 0%
Annual Cash Bonus ........................ $1,600,000 $ 746,667 114%
Total Cash Compensation .................. $2,400,000 $1,546,667 55%
Equity Awards ............................ $3,508,000 $8,297,237 (58%)
Total Direct Compensation ................. $5,908,000 $9,843,904 (40%)
In fiscal 2011, Mr. Riccitiello’s base salary was not increased from its fiscal 2010 level and his bonus target
percentage also remained unchanged at 150 percent of his annual base salary. Based on market data,
Mr. Riccitiello’s base salary and target total cash compensation were below our targeted compensation levels.
Mr. Riccitiello’s fiscal 2011 cash bonus payout was $1,600,000, which corresponds to 133 percent of his target
bonus opportunity. Mr. Riccitiello’s cash bonus was determined based upon an overall evaluation of his
performance against the following objectives:
• Company Financial Objectives:
Weight Objective Attainment
40% Non-GAAP Earnings Per Share Exceeded
15% Non-GAAP Revenue Achieved
10% Non-GAAP Digital Revenue Exceeded
• Strategic and Operational Objectives:
Weight Objective
15% Business Transformation Goals
10% Improvement in Top 10 and Top 30 Chart Position
10% Organizational Health: Attrition, Diversity, and Engagement
In determining Mr. Riccitiello’s final bonus, the Committee considered the Company’s strong overall financial
performance, the significant progress made in our business transformation, including substantial growth in digital
revenues, maintaining the number of titles ranked in the Top 30 for sales across North America and Europe, as
well as achievements in company-wide organizational health objectives.
In fiscal 2011, the Board, based on a recommendation from the Committee, granted Mr. Riccitiello 200,000 time-
based restricted stock units, which will vest ratably on an annual basis over a three-year period. The Committee
recommended this award after consulting with Compensia regarding the current market practices for CEO
compensation, considering Mr. Riccitiello’s unvested equity holdings, the performance of our stock, and the
overall performance of the Company. Time-based restricted stock units were used to strengthen the retention
value of the long-term incentive component of his total compensation during a period of transformation of the
Company from a predominately packaged goods business into a digital business.
The value of the fiscal 2011 equity award granted to Mr. Riccitiello was below the target level of 75th percentile
of market that we refer to for equity awards, and had a grant date fair value that was 58 percent lower than
Mr. Riccitiello’s fiscal 2010 equity awards. The Committee determined that this equity award together with
Mr. Riccitiello’s other outstanding equity awards would align his total equity compensation with our
compensation philosophy, market practices, and the goal of creating long-term stockholder value.
As a result of these decisions, Mr. Riccitiello’s total direct compensation declined by 40 percent year-over-year.
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