Electronic Arts 2012 Annual Report Download - page 51

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Proxy Statement
Mr. Gibeau
0%
25%
50%
75%
100%
FISCAL 2012
0%
25%
50%
75%
100%
FISCAL 2011
Salary $624,577
Bonus $775,000
Salary
$591,538
Bonus
$1,180,000
Time-Based Equity
$2,308,800
Retention Equity
$2,665,500
Total Direct Compensation
$4,080,338
Time-Based Equity
$2,242,000
Total Direct Compensation
$9,783,743
Performance Equity
$3,476,666
Performance-
Based:
29%
Performance-
Based:
43%
Mr. Gibeau’s role expanded significantly in fiscal 2012 when he was appointed President of EA Labels, and
charged with leading all of the Company’s development activities. In this role, Mr. Gibeau has responsibility for
the product development, worldwide product management and marketing for all packaged goods and online
offerings within the Company for EA SPORTS, EA Games, Maxis, BioWare, PopCap, and our Social/Mobile
Studios. Previously, Mr. Gibeau had served for four years as head of the EA Games label.
Base Salary and Bonus Target: In the first quarter of fiscal 2012, the Committee elected to increase
Mr. Gibeau’s base salary by 5% while his bonus target percentage remained unchanged at 100% of his annual
base salary. His base salary was increased to better align his base salary with the market and with internal peers.
Based on market data, Mr. Gibeau’s fiscal 2012 base salary and target total cash compensation were within our
targeted compensation range.
Cash Bonus Award: Mr. Gibeau’s fiscal 2012 cash bonus award was $775,000, which corresponds to 124% of
his target bonus opportunity. To determine Mr. Gibeau’s cash bonus award, the Committee took into account the
Company’s overall strong financial performance, including non-GAAP net revenue and non-GAAP diluted
earnings per share results, as well as an overall evaluation of his strategic and operational achievements. Those
achievements included the integration of three separate organizations (EA Games, EA Play and EA Sports) into a
single “EA Labels” organization under Mr. Gibeau’s leadership, exceeding the revenue, digital revenue, and
profitability goals for EA Labels, the on-time shipment of quality games, and the successful product launches of
Battlefield 3 and Star Wars: The Old Republic.
Equity Awards: In June 2011, the Committee granted Mr. Gibeau performance-based RSUs of which up
to100,000 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 100,000 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. The Committee used a mix of
both performance-based and time-based RSUs to balance the desire to drive long-term stock price growth and
promote long-term retention.
In February 2012, Mr. Gibeau was granted an additional 150,000 time-based RSUs for retention purposes, which
will vest in two equal annual installments. The Committee believed this grant was appropriate given the intense
competition for executive management talent in our sector.
43