Electronic Arts 2016 Annual Report Download - page 42

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RSUs
Annual Award grants of RSUs to our NEOs vest annually over 35 months from the grant date in equal
increments each May. For fiscal 2016, approximately 50% of the total value of our NEOs’ Annual Awards were
made in the form of RSUs.
PRSUs
The Compensation Committee grants PRSUs to Senior Vice President level employees and above as part of their
annual equity awards. To encourage executive retention and to encourage our executives to focus on long-term
stock price performance, the PRSUs vest over a three-year period. The number of shares earned is adjusted based
upon changes in our TSR relative to the TSR of the companies in the NASDAQ-100 Index (the “Relative
NASDAQ-100 TSR Percentile”) measured over 12-month, 24-month cumulative and 36-month cumulative
periods (each such period, a “Vesting Measurement Period”). PRSUs generally will vest upon the first, second
and third anniversaries of the date of grant (which we call “Vesting Opportunities”). For fiscal 2016, half of the
total value of our NEOs’ Annual Awards were made in the form of PRSUs.
The illustration below depicts how the number of shares earned is calculated:
Target PRSUs x
Relative
NASDAQ-100
TSR Percentile Multiplier
= Shares Earned
The Relative NASDAQ-100 TSR Percentile multiplier, which can range from 0% to 200%, is based on the
change in our stock price during a Vesting Measurement Period (i.e., approximately the 12-month period, 24-
month cumulative period and 36-month cumulative period following of the date of grant), using a 90-day trailing
average stock price. If the Company’s Relative NASDAQ-100 TSR Percentile is at the 60th percentile (i.e., 10%
higher than the median TSR of the NASDAQ-100) at the end of a Vesting Measurement Period, 100% of target
shares will be earned. The percentage of shares earned will be adjusted upward by 3% or downward by 2% for
each percentile above or below the 60th percentile, respectively.
The following table illustrates the percentage of shares that could be earned from our PRSUs based on the
Company’s Relative NASDAQ-100 TSR Percentile.
Relative NASDAQ-100 TSR Percentile 1st to
10th 25th 40th 60th 75th 90th 94th to
100th
Relative NASDAQ-100 TSR Multiplier 0% 30% 60% 100% 145% 190% 200%
The following table illustrates the percentage of shares subject to outstanding PRSUs earned at the end of fiscal
2016:
PRSU Grant Date June 2013 June 2014 June 2015
Measurement Period Fiscal 14-16 Fiscal 15-17 Fiscal 16-18
90 day average stock price (at start of measurement period) $20.35 $32.36 $61.26
Length of Vesting Measurement Period 3 Years 2 Years 1 Year
90 day average stock price (at end of measurement period) $63.84
EA’s TSR 213.70% 97.30% 4.22%
EA’s Relative NASDAQ-100 TSR Percentile 98th 99th 73rd
Percentage of Target Shares Earned in May 2016 200% 200% 138%
The number of shares earned is capped at 200% of the target shares available for vesting at a Vesting
Opportunity. For example, in fiscal 2016 our TSR for PRSUs granted in June 2013 was 213.70% and our
Relative NASDAQ-100 TSR Percentile for the 36-month Vesting Opportunity of those PRSUs was in the 98th
percentile. Without this cap, our NEOs would have earned 213.70% of target shares from the June 2013 PRSU
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