Electronic Arts 2011 Annual Report Download - page 47

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Proxy Statement
Tax and Accounting Policies
Section 162(m)
When making compensation decisions for our NEOs, the Committee considers if the compensation arrangements
are tax deductible under Section 162(m) of the Internal Revenue Code. However, tax deductibility is not the
primary factor in determining appropriate levels or modes of compensation. Since corporate objectives may not
always be consistent with the requirements for tax deductibility, we may, if consistent with our compensation
philosophy, enter into compensation arrangements under which payments are not fully deductible under
Section 162(m).
Accounting for Stock-Based Compensation
We account for our stock-based compensation awards in accordance with applicable accounting standards. The
comparable compensation expense of restricted stock units and stock options has removed a financial reporting
disincentive to use restricted stock units that existed before we began expensing stock options under the current
accounting standard. As such, we use restricted stock units for all employee groups, including our NEOs.
EXECUTIVE COMPENSATION AND LEADERSHIP COMMITTEE REPORT ON EXECUTIVE
COMPENSATION
The following Executive Compensation and Leadership 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
39