8-KLeadership ChangesExhibits & Filings

ELECTRONIC ARTS INC. 8-K Report, Executive Changes (Jun 6, 2007)

Filed June 6, 2007For Securities:EA

Summary

This 8-K filing from Electronic Arts Inc. (EA) on June 5, 2007, primarily announces a significant executive appointment and related compensation. EA has appointed Kathy Vrabeck as the President of its newly formed EA Casual Entertainment division, effective May 30, 2007. Ms. Vrabeck brings substantial experience from her previous roles at Activision, Inc., where she held several senior leadership positions in publishing and brand management. Investors should note the strategic importance of this new division, EA Casual Entertainment, which is focused on a growing segment of the gaming market. The appointment of Ms. Vrabeck, a seasoned executive with a strong background in the interactive entertainment industry, signals EA's commitment to expanding its presence in casual gaming. The filing also details her compensation package, including a base salary, bonus potential, stock options, and restricted stock units, which indicates the company's investment in attracting and retaining key talent for this new venture.

Key Highlights

  • 1Appointment of Kathy Vrabeck as President of the new EA Casual Entertainment division.
  • 2EA Casual Entertainment is a newly formed division focused on developing and publishing games for consoles, PCs, handheld devices, and mobile phones.
  • 3Ms. Vrabeck has extensive experience in the interactive entertainment industry, including senior roles at Activision.
  • 4Ms. Vrabeck's annual base salary is set at $550,000.
  • 5She is eligible for a discretionary target bonus of 75% of her base salary.
  • 6Grant of stock options for 315,000 shares and 45,000 restricted stock units, subject to vesting schedules.

Frequently Asked Questions

The EA Casual Entertainment division is a strategic move by EA to focus on the rapidly growing casual gaming market across various platforms, including consoles, PCs, handheld devices, and mobile phones. This indicates EA's intention to capture a larger share of this market segment.

Kathy Vrabeck is the newly appointed President of EA Casual Entertainment. She has a strong background in the interactive entertainment industry, having previously held significant leadership roles at Activision, Inc., including President of Activision Publishing.

Ms. Vrabeck's compensation includes an annual base salary of $550,000, a target bonus of 75% of her base salary, a stock option grant for 315,000 shares with a phased vesting schedule, and 45,000 restricted stock units that vest after four years. She will also participate in EA's standard executive compensation and benefit programs.

While her employment started on May 30, 2007, the stock options and restricted stock units are scheduled to be officially granted on June 18, 2007. This is the first regularly scheduled date following her start date where EA's Compensation Committee will approve equity grants.