Electronic Arts 2012 Annual Report Download - page 48

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Determining NEOs’ and CEO’s Actual Bonuses for Fiscal 2012
In May 2012, after the conclusion of fiscal 2012, the Committee approved the fiscal 2012 cash bonus award for
each NEO (other than Mr. Riccitiello) based on the financial and operational performance of the Company, their
business unit (if applicable), as well as their individual performance. In the case of Mr. Riccitiello, the Committee
reviewed similar factors, as well as his specific performance objectives, and then recommended a fiscal 2012 cash
bonus award for Mr. Riccitiello to the Board of Directors for final approval. There was no mathematical formula
used to calculate bonus awards based on financial objectives. Rather, those objectives, like the other individual
strategic and operational objectives, were evaluated on a qualitative basis by the Committee, which considered all of
the factors discussed below in making their determination without assigning any specific weighting to the factors.
For the rationale behind individual bonus awards please see the “Fiscal Year Overview” and the “Individual
NEO Compensation” sections.
INDIVIDUAL NEO COMPENSATION
This section describes the determination of the base salary, annual cash bonus and equity awards for each of our
NEOs for fiscal 2012. Charts are shown for each individual who was a NEO in both fiscal 2011 and 2012 and
still employed by the Company at the end of fiscal 2012. The charts illustrate the portion of compensation that is
linked to performance. Equity awards are shown using grant date fair value, as reported in the “Summary
Compensation” table.
Mr. Riccitiello
0%
25%
50%
75%
100%
FISCAL 2012
Total Direct Compensation
$9,514,395
0%
25%
50%
75%
100%
FISCAL 2011
Total Direct Compensation
$5,908,000
Salary
$800,000
Bonus
$1,600,000
Time-Based Equity
$3,508,000
Salary $865,538
Bonus $1,500,525
Time-Based Equity
$2,802,500
Performance Equity
$4,345,832
Performance-
Based:
27%
Performance-
Based:
61%
Base Salary and Bonus Target: In the first quarter of fiscal 2012, the Board of Directors elected to increase
Mr. Riccitiello’s base salary by 10% while his bonus target percentage remained unchanged at 150% of his
annual base salary. This decision was based on his contribution to the improved financial and operational
performance of the Company, while also considering market compensation data. The salary increase brought
Mr. Riccitiello’s fiscal 2012 base salary and target total cash compensation closer to our targeted range, but both
remained below the median of our peer group.
In determining Mr. Riccitiello’s actual bonus award for fiscal 2012, each financial, strategic and operational
objective was assigned a percentage weighting of his overall bonus; however, the final bonus award was
determined based on an overall, qualitative assessment of his performance against objectives. After reviewing
these factors, the Committee recommended the fiscal 2012 actual bonus award for Mr. Riccitiello. The Board of
Directors then approved Mr. Riccitiello’s payout.
40