Electronic Arts 2015 Annual Report Download - page 38

Equity Compensation
Equity compensation is used as a tool to hire and retain the Company’s top talent. In fiscal 2015, Mr. Moss was
granted time-based RSUs (“RSUs”) and stock options (collectively, the “New Hire Award”) in connection with
his offer of employment. To determine the value of the New Hire Award, the Compensation Committee
referenced market data for his role in our peer group and the value of equity forfeited with his former employer
upon departure. A significant portion of Mr. Moss’ New Hire Award replaced the value of the equity he forfeited
at his former employer. The other NEOs’ annual equity awards (“Annual Awards”) were targeted to be
comprised of 50% RSUs with a three-year pro rata vesting schedule; 25% PRSUs with vesting tied to the
Company’s TSR; and 25% stock options with time-based vesting. The number of PRSUs, stock options and
RSUs awarded to each NEO was determined based upon an assessment of various individual factors, including
each NEOs’ role and tenure with the Company, individual performance, the value of unvested equity for
retention considerations, the grant date fair-value of the award, competitive market practices, including
benchmarking data for the position, and internal compensation alignment among our executive officers.
The following table shows the value of the Annual Awards granted to Mr. Wilson, Mr. Jorgensen, Mr. Söderlund
and Mr. Moore in fiscal 2015 and the New Hire Award granted to Mr. Moss:
FISCAL 2015 ANNUAL AWARD VALUES AND NEW HIRE
AWARD VALUES FOR NEOs
Target PRSUs RSUs
Stock
Options
Total Value
at Grant
Accounting
Value at
Grant
Mr. Wilson .......................... $2,000,000 $4,000,000 $2,000,000 $8,000,000 $8,696,866
Mr. Jorgensen ....................... $ 875,000 $1,750,000 $ 875,000 $3,500,000 $3,804,838
Mr. Söderlund ....................... $1,500,000 $3,000,000 $1,500,000 $6,000,000 $6,522,628
Mr. Moore .......................... $ 750,000 $1,500,000 $ 750,000 $3,000,000 $3,261,296
Mr. Moss ........................... — $5,000,000 $1,500,000 $6,500,000 $6,499,989
Approximately 75% of the aggregate compensation of our NEOs for fiscal 2015 was provided in the form of
long-term equity.
Following our 2014 Annual Meeting, our Board and Compensation Committee conducted an in-depth analysis of
our executive compensation programs and considered the discussions with our stockholders and the results of our
2014 say on pay vote. As a result, the Compensation Committee with the support of our Board approved changes
to our executive compensation program along with a wide variety of other factors. These changes, implemented
for fiscal year 2016, eliminated stock options from the annual equity awards granted to our executive officers and
increased the percentage of PRSUs from 25% to 50% with vesting tied to the Company’s TSR over one-, two-
and three-year periods; the remaining 50% of the annual equity award is granted in RSUs in order to balance pay-
for-performance and retention considerations. We granted our NEOs’ fiscal 2015 Annual Awards in June 2014
prior to this in-depth analysis of our executive compensation programs and the discussions with our stockholders
regarding our pay practices.
Upon joining the Company, Mr. Moss was granted a New Hire Award with the vesting schedules and terms
described below. Because Mr. Moss was not an employee of the Company at the time that the Committee granted
Annual Awards, he was not granted PRSUs in fiscal 2015. Mr. Moss received an Annual Award in fiscal 2016
consistent with our other executive officers and 50% of his fiscal 2016 Annual Award was in the form of PRSUs.
Mr. Wilson, Chief Executive Officer
In determining the size of Mr. Wilson’s Annual Award, the Board considered market data for existing CEOs,
Mr. Wilson’s current unvested equity holdings from PRSU, RSU and stock option grants and Mr. Wilson’s
individual performance during fiscal 2014, including launching games on time for both the Xbox One and
PlayStation 4, as well as the Xbox 360 and PlayStation; and the Company’s increasing percentage of digital
revenue as a portion of total revenue.
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