8-KLeadership ChangesExhibits & Filings

ELECTRONIC ARTS INC. 8-K Report, Executive Changes (Mar 27, 2008)

Filed March 27, 2008For Securities:EA

Summary

Electronic Arts Inc. (EA) has filed a Form 8-K reporting the appointment of Eric F. Brown as its new Chief Financial Officer (CFO), effective March 27, 2008. This appointment is a significant leadership change, and investors should note Mr. Brown's extensive experience in financial roles at prominent technology companies, including McAfee, Inc. and MicroStrategy Incorporated. His prior experience also includes a stint within EA's studio organization, suggesting a degree of familiarity with the company's operations. The filing also details Mr. Brown's compensatory arrangements, including a base salary of $600,000, a target bonus of 75%, a one-time bonus of $100,000, and significant equity awards in the form of stock options and restricted stock units. Substantial relocation assistance is also provided, with clawback provisions based on tenure. These compensation details provide insight into how EA is incentivizing its new CFO.

Key Highlights

  • 1Appointment of Eric F. Brown as Chief Financial Officer (CFO) effective March 27, 2008.
  • 2Mr. Brown brings prior experience as COO and CFO of McAfee, Inc. and CFO/President of MicroStrategy Incorporated.
  • 3Mr. Brown has previous experience within EA's studio organization.
  • 4Annual base salary for Mr. Brown set at $600,000.
  • 5Discretionary target bonus set at 75% of base salary.
  • 6Stock option grant for 250,000 shares and 83,300 restricted stock units awarded to Mr. Brown.
  • 7Extensive relocation assistance and associated repayment terms outlined for Mr. Brown.

Frequently Asked Questions

Eric F. Brown has been appointed as the new Chief Financial Officer (CFO) of Electronic Arts Inc., with the appointment effective March 27, 2008.

Mr. Brown has significant financial leadership experience, including serving as Chief Operating Officer and Chief Financial Officer of McAfee, Inc., and as President and Chief Financial Officer of MicroStrategy Incorporated. He also previously held financial roles within EA's studio organization.

Mr. Brown's compensation includes an annual base salary of $600,000, a discretionary target bonus of 75% of his base salary, a $100,000 one-time bonus, a stock option grant for 250,000 shares, and 83,300 restricted stock units. He will also receive substantial relocation assistance.

Yes, the relocation assistance has repayment clauses. Mr. Brown must repay all expenses if he leaves voluntarily or is terminated for reasons other than a role-eliminating reduction in force before his first anniversary of hire. A pro-rata portion is payable if he leaves between the first and second anniversaries. The equity awards (stock options and restricted stock units) have specific vesting schedules over several years.