Electronic Arts 2012 Annual Report Download - page 49

Proxy Statement
Cash Bonus Award: Mr. Riccitiello’s fiscal 2012 cash bonus award was $1,500,525, which corresponds to
115% of his target bonus opportunity. Mr. Riccitiello’s cash bonus was determined based upon an evaluation of
his performance against the following financial and strategic objectives:
Weight Objective Performance
Performance vs.
CEO Objective
50%
Non-GAAP Net Revenue $4,186 million Exceeded
Non-GAAP Diluted
Earnings-Per-Share
$0.85 Exceeded
25% Non-GAAP Digital
Revenue
$1,227 million Exceeded
25%
• Increased market share in Western markets for
package goods
Exceeded
Deliver on EA Chart
Position, Business
Transformation Initiatives
and Organizational Health
• Five of our titles in the top-20 bestsellers list and
two of our titles in top-five bestsellers list
Achieved
• Launched Star Wars: The Old Republic, on a large
scale and with high stability
Achieved
• Strong growth in Origin platform Exceeded
• Organization health initiatives around attrition,
diversity, college recruiting and employee
engagement
Achieved
Equity Awards: In June 2011, the Board of Directors, based on a recommendation from the Committee, granted
Mr. Riccitiello performance-based RSUs, of which up to 125,000 shares may vest if target performance levels are
achieved (with a potential range of shares vesting between zero to 200% of the target shares based on actual
performance) and 125,000 time-based RSUs.
The Committee recommended and the Board of Directors approved these awards after consulting with
Compensia regarding the current market practices for CEO compensation, taking into consideration
Mr. Riccitiello’s unvested equity holdings, the performance of the Company, and the design of the performance-
based RSUs, which requires the Company’s total stockholder return to rank at the 60th percentile of the
companies in the NASDAQ-100 in order to vest the target share amount. Based on the equity values reported in
the “Summary Compensation” table, which value the performance-based RSUs at a premium above their closing
price on the date of grant (as discussed above in “Additional Factors Impacting Equity Grant Size”), the value of
Mr. Riccitiello’s fiscal 2012 equity award was slightly above the 75th percentile of market. However, when those
performance-based RSUs are valued at the closing price on the date of grant, which the Committee and Board of
Directors also considered in making these awards, the value of Mr. Riccitiello’s fiscal 2012 equity award was
below our target of 75th percentile of market.
The following table shows the pay positioning of Mr. Riccitiello’s total direct compensation, using these two
valuation scenarios.
Performance-based RSUs Valued at:
Grant Date Fair Value Closing Price on Date Of Grant
Base Salary Below 50th Percentile Below 50th Percentile
Target Cash Below 50th Percentile Below 50th Percentile
Equity Above 75th Percentile Below 75th Percentile
Total Target Direct
Compensation Above 75th Percentile Between 50th and 75th Percentile
In determining Mr. Riccitiello’s fiscal 2012 total target compensation, the Committee and the Board of Directors
placed special weight on (1) the overall strong performance of Mr. Riccitiello and the Company during fiscal
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