8-KLeadership ChangesExhibits & Filings

ELECTRONIC ARTS INC. 8-K Report, Executive Changes (Jul 17, 2007)

Filed July 17, 2007For Securities:EA

Summary

Electronic Arts Inc. (EA) announced a significant executive appointment via an 8-K filing on July 17, 2007. The company has hired Peter Moore, a seasoned executive with a strong background in the video game industry, to serve as the President of the EA SPORTS Label. Mr. Moore's experience includes leadership roles at Microsoft (overseeing Xbox and Games for Windows) and SEGA of America, as well as a prior marketing role at Reebok. This appointment signals EA's intent to bolster its EA SPORTS division, a key revenue driver. The filing details Mr. Moore's compensation package, which includes a substantial base salary, a signing bonus, stock options, and restricted stock units, reflecting the company's investment in attracting top talent. The terms of his employment also include provisions for relocation assistance and repayment clauses for the bonus and relocation expenses should he leave the company under certain conditions within the first two years.

Key Highlights

  • 1Appointment of Peter Moore as President of the EA SPORTS Label, effective September 4, 2007.
  • 2Peter Moore brings extensive experience from leadership roles at Microsoft (Xbox, Games for Windows) and SEGA of America.
  • 3Mr. Moore's annual base salary will be $550,000.
  • 4A one-time bonus of $1,500,000 will be paid to Mr. Moore within 30 days of his start date, with repayment required if he voluntarily leaves within two years.
  • 5EA will grant Mr. Moore stock options for 350,000 shares and 50,000 restricted stock units, with staggered vesting schedules.
  • 6Relocation assistance of approximately $330,000 is provided, with repayment obligations tied to the duration of his employment.
  • 7The appointment is effective following the approval of equity grants by EA's Compensation Committee on September 17, 2007.

Frequently Asked Questions

Peter Moore is a highly experienced executive in the gaming and entertainment industry, having previously led Microsoft's Xbox and Games for Windows businesses and served as President and COO of SEGA of America. His appointment as President of the EA SPORTS Label is significant as it brings proven leadership to a critical and high-performing division of Electronic Arts, potentially driving future growth and innovation in sports gaming.

Mr. Moore's compensation package includes an annual base salary of $550,000, a target bonus of 75% of his base salary, a $1,500,000 signing bonus (paid early but earned over two years), a stock option grant for 350,000 shares, and 50,000 restricted stock units. EA is also covering approximately $330,000 in relocation expenses.

Yes, there are repayment clauses. If Mr. Moore voluntarily leaves EA before completing two years of employment, he must repay the full net amount of the $1,500,000 bonus. For relocation expenses, he must repay all incurred expenses if he leaves voluntarily within the first year, and a pro-rata portion if he leaves voluntarily between his first and second anniversaries.

Mr. Moore's anticipated start date is September 4, 2007. His stock options and restricted stock units are scheduled to be granted on September 17, 2007, which is the first regularly scheduled date after his start date for the Compensation Committee to approve such grants.