Electronic Arts 2011 Annual Report Download - page 45

Proxy Statement
Benefits and Retirement Plans
We provide a comprehensive benefits package to all of our regular, full-time employees, including our 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, 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. These benefits, and the levels provided, are consistent
with those offered by similar-sized companies. We also maintain a nonqualified deferred compensation plan in
which certain employees, including our NEOs, and our Directors are eligible to participate, as described in the
narrative accompanying the “Nonqualified Deferred Compensation Table” below.
Perquisites and Other Personal Benefits
We have consistently taken a conservative approach with respect to providing perquisites and other personal
benefits to our NEOs. While our NEOs generally receive the same benefits that are available to our other regular,
full-time employees, they also receive certain additional benefits, including access to a Company-paid physical
examination program, and greater maximum benefit levels with respect to life insurance, AD&D, and long-term
disability coverage. We consider these benefits to be standard components of a competitive compensation
package. Company-reimbursed air and ground transportation is restricted to business travel.
Relocation Assistance
We did not provide any significant relocation benefits to any of our NEOs during fiscal 2011. In past fiscal years,
we have provided relocation benefits to our executive officers, including our NEOs, in order to induce job
candidates to accept job offers for certain open positions that are critical to the Company’s business needs. These
benefits may include household goods and car shipment, travel, temporary housing, car rental, storage,
miscellaneous relocation allowance, home sale and purchase assistance, house-hunting trips, and tax protection to
offset costs incurred by our executive officers as a result of these relocations. Relocation benefits provided to
NEOs in prior years are reported in the “All Other Compensation” column of the “Summary Compensation
Table” below.
Post-Employment Arrangements
Change of Control Plan
Our executive officers, including our NEOs, are eligible to participate in the Electronic Arts Inc. Key Employee
Continuity Plan, which is a “double-trigger” change of control plan. We believe it is important to offer our
executive officers this type of severance benefit in order to attract executive talent by mitigating the harm that
they would suffer if their employment is terminated by the Company for reasons beyond their 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 and acts as an additional incentive for our executive officers to
comply with their post-termination covenants. The Electronic Arts Inc. Key Employee Continuity Plan provides
for specified levels of cash severance, continued health benefits and accelerated vesting of certain outstanding
equity awards in the event of a qualifying termination of employment in connection with a change of control of
the Company, as described in more detail under “Potential Payments Upon Change of Control” below.
Severance Plan
We maintain an ERISA-regulated severance plan (the “Severance Plan”) that applies to (1) all of our U.S.-based
employees whose jobs are terminated due to a reduction-in-force and (2) any other employee we select to
participate in the plan upon his or her termination of employment. Under the Severance Plan, eligible employees
may receive a cash severance payment equal to two weeks pay, with any additional payments to be determined
solely at our discretion. In addition, under the Severance Plan, we will pay the premiums for continued health
benefits, if such benefits are continued pursuant to COBRA, for a time period equal to the number of weeks of
cash severance paid.
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