Electronic Arts 2014 Annual Report Download - page 41

Proxy Statement
In the third quarter of fiscal 2014 (November 2013), the Committee assessed this peer group for use in
benchmarking fiscal 2015 compensation decisions and determined that it was still an appropriate representation
of comparable companies, and did not make any changes.
Compensation Benchmarking
In February 2013, Compensia conducted a comprehensive analysis of our executive compensation programs
using publicly available compensation information on our peer group and data from the Radford Global
Technology Survey. The analysis included a comparison of the base salary, bonus target, total cash, long-term
incentives and total compensation of each of our senior vice-president level positions and above against similar
positions in our peer group. Each compensation element was evaluated against peer group compensation at
multiple percentile levels. Where sufficient market data for our peer group was not available, Compensia used
data from a broader group of similarly sized technology companies. Compensia provided the Committee with its
findings in February 2013 to be used as a reference for making compensation decisions for fiscal 2014.
Determining NEOs’ Fiscal 2014 Salaries, Target Bonuses, and Equity Grant Recommendations
In May 2013, the Committee reviewed and approved base salary, target cash bonus and Annual Award
recommendations for fiscal 2014 for each of our NEOs, other than our Executive Chairman and CEO, taking into
consideration the following, as applicable:
• The Company’s compensation philosophy and principles;
• The financial, strategic and operational performance of the Company and each NEO’s relevant business
unit (as applicable);
• Each NEO’s individual performance;
• An internal comparison of each NEO’s compensation;
• Peer group market data provided by Compensia;
• Current unvested equity holdings;
• Realized value of compensation; and
• The importance of each NEO’s individual role with respect to the Company’s long-term strategic
initiatives.
Following the appointment of Mr. Wilson as CEO, the Committee reviewed the base salary and target bonus
levels of several senior executives in light of changes to the organization, individual roles and responsibilities. In
November 2013, the Committee adjusted the target bonus percentage for Mr. Söderlund, from 75% to 100% of
his base salary. This adjustment was in recognition of the significant increase to the scope of Mr. Söderlund’s
responsibilities as Executive Vice President, EA Studios and to align with the target bonus percentages of
internal peers. No other adjustments were made to our NEOs’ compensation at that time. In calculating
Mr. Söderlund’s cash bonus for fiscal 2014, Mr. Söderlund’s new and former bonus targets were applied on a
pro-rata basis.
Determining CEO’s Fiscal 2014 Salary, Target Bonus, and Equity Grant Recommendations
The compensation of the CEO is determined by the Board, upon recommendation from the Committee, with the
assistance of Compensia. During fiscal 2014, the Committee developed a compensation recommendation for
Mr. Wilson for the CEO position. This recommendation included a base salary, target cash bonus opportunity,
and equity award. The compensation recommendations were presented to the Board, which then approved the
compensation offered to Mr. Wilson for the role of CEO.
Executive Chairman Compensation
In March 2013, the Committee, with the assistance of Compensia, developed a compensation recommendation
for our Executive Chairman, which then was approved by the Board. After Mr. Wilson was appointed as CEO,
the Board reevaluated and approved a reduction to the Executive Chairman’s salary effective October 1, 2013.
35