Electronic Arts 2012 Annual Report Download - page 50

2011; (2) the increased alignment of Mr. Riccitiello’s compensation with shareholder value, which resulted from
61% of his fiscal 2012 compensation being performance-based and 75% of his fiscal 2012 total compensation
being provided in the form of long-term equity; and (3) the fact that Mr. Riccitiello’s fiscal 2011 total target
direct compensation was below the 50th percentile of market. As a result, Mr. Riccitiello’s total direct
compensation from fiscal 2011 to fiscal 2012 increased 61% when applying the values reported in the “Summary
Compensation” table, or 35% when applying the closing stock price on the date his equity awards were granted.
As shown in the chart below, in comparison to the average pay mix of our peer companies, a larger percentage of
our CEO’s fiscal 2012 total target direct compensation was in the form of performance-based and long-term
equity.
CEO Compensation Mix: Peer Group versus EA
Options
32%
Time-Based Equity 12%
0%
25%
50%
75%
100%
EA CEO, Fiscal 2012
Peer Group CEOs Average*
Percent of Total
Compensation
Equity
Compensation
56% 75%
Other Long-Term Compensation, 2%
Salary
15%
Performance Equity
12%
Bonus
27%
Salary 9%
Bonus
16%
Performance Equity
46%
Time-Based Equity
29%
* Per compensation benchmarking of our Fiscal 2012 Peer Group, February 2011; data reflects only CEOs in
the 2012 Peer Group serving more than one year.
Mr. Barker
Mr. Barker assumed the role of interim Chief Financial Officer in February 2012. He had previously served in
the role of Chief Accounting Officer at the Company for nearly nine years.
Base Salary and Bonus Target: In the first quarter of fiscal 2012, the Committee elected to increase
Mr. Barker’s base salary by 4% while his bonus target percentage remained unchanged at 60% of his annual base
salary. Mr. Barker’s base salary increase was in-line with the Company’s overall salary increase budget.
Cash Bonus Award: Mr. Barker’s fiscal 2012 cash bonus award was $355,000, which corresponds to 139% of
his target bonus opportunity. To determine Mr. Barker’s cash bonus, the Committee took into account the
Company’s strong financial performance, including the non-GAAP net revenue and non-GAAP diluted earnings
per share results for the fiscal year, as well as an overall evaluation of his fiscal 2012 strategic and operational
achievements. Those achievements included his assumption of additional responsibilities within the Company’s
finance organization and in connection with the PopCap acquisition. In determining the overall amount of
Mr. Barker’s fiscal 2012 cash bonus award, the Committee also recognized the additional responsibilities and
duties Mr. Barker performed as interim Chief Financial Officer following the departure of Mr. Brown in
February 2012, such as the completion of the share buyback program and leading the fiscal 2013 financial
planning process.
Equity Awards: In June 2011, the Committee granted Mr. Barker 37,500 time-based RSUs. The Committee
determined the size of his award based on his performance, the unvested value of his outstanding equity awards,
external market practices, and internal compensation alignment. In February 2012, Mr. Barker was granted an
additional 40,000 time-based RSUs, which will vest in two equal annual installments. The Committee granted
these shares to Mr. Barker for retention purposes and in recognition for serving as the interim Chief Financial
Officer following Mr. Brown’s resignation in February 2012, in addition to his role as Chief Accounting Officer.
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