Electronic Arts 2015 Annual Report Download - page 36

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Mr. Wilson, Chief Executive Officer
Base Salary & Bonus Target:In the first quarter of fiscal 2015, the Board increased Mr. Wilson’s base salary
by 12.5% and maintained his target bonus percentage at 150% of his base salary. Mr. Wilson’s base salary was
increased as a result of his performance and the financial and operating performance of the Company during
fiscal 2014 and to better align his base salary with the base salaries for CEOs in our peer group. While
Mr. Wilson’s resulting base salary and total target cash compensation were below the median for CEOs in our
peer group, the Board determined that Mr. Wilson’s aggregate compensation package (base, target bonus and
equity award) was appropriate relative to his tenure in the role.
Cash Bonus: Mr. Wilson’s objectives that the Board considered material in making the determination of his
fiscal 2015 cash bonus and the attainment of those objectives are set forth below:
Fiscal 2015 Objectives Target Actual(1)
Non-GAAP Financial & Digital Objectives (60% weight):
(In millions, except earnings per share and percentages)
Net Revenue .............................................................. $4,150 $4,319
Gross Profit ............................................................... $2,844 $3,066
Operating Expenses ......................................................... $2,000 $1,990
Diluted Earnings Per Share (based on share count of 326M) ......................... $ 1.90 $ 2.47
Digital Revenue as a % of Total Revenue ....................................... 50% 52%
Mobile Revenue Stretch Growth Target ......................................... 39% 16%
Growth in Nucleus Accounts ................................................. 15% 25%
Growth in Monthly Active Users .............................................. 20% 19%
Strategic & Operative Objectives (40% weight):
Console/PC Launches, Mobile Launches, New IP and Fiscal 2016 Readiness, Organizational
Health ................................................................... N/A N/A
(1) Appendix A to this Proxy Statement includes a reconciliation of the non-GAAP financial measures referenced above to the most directly
comparable GAAP financial measures.
In fiscal 2015, the Board removed a TSR multiplier that we previously applied to the calculation of our CEO’s
final bonus payout. The Board determined to remove this TSR multiplier so that the Company’s TSR would not
be a determining factor in both Mr. Wilson’s final bonus payout and the number of his PRSUs that vest in fiscal
2015. In addition, in fiscal 2015 the Board added financial objectives related to our digital revenue and mobile
business to Mr. Wilson’s financial and digital objectives to reflect the growing focus of our business on the
digital delivery of digital games and services. The Board also increased the weight given to Mr. Wilson’s
strategic and operational objectives in order to provide Mr. Wilson incentives related to non-financial objectives
that the Board felt are critical for the long-term health and success of the Company, many of which are pre-set
and quantifiable such as: reducing voluntary attrition below fiscal 2014 levels; preparing a pre-set number of
games, including mobile titles and console titles based on new IP for launch in fiscal year 2016 and the
commercialization of FIFA World and FIFA Online 3 in China.
In determining Mr. Wilson’s final cash bonus payout, the Board considered the weighting and achievement of
Mr. Wilson’s fiscal 2015 objectives set forth above. The Board then exercised its discretion to increase
Mr. Wilson’s final bonus payment for factors that it deemed significant, including the Company bonus funding
percentage of 125% discussed above and Mr. Wilson’s individual performance (provided that Mr. Wilson’s
bonus may not exceed 200% of his target bonus). Factors that the Board considered in determining Mr. Wilson’s
individual performance included: his leadership in the critical and financial success of the Company’s fiscal 2015
game launches, including FIFA 15, Madden NFL 15,Dragon Age: Inquisition and Battlefield: Hardline; the
Company’s significant increase in digital revenue; the success of new products and services; the development of
new IP; recognizing and fostering talent within the Company and Mr. Wilson’s implementation of his strategy
and direction for the Company.
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