8-KLeadership ChangesExhibits & Filings

ELECTRONIC ARTS INC. 8-K Report, Executive Changes (Jun 18, 2009)

Filed June 18, 2009For Securities:EA

Summary

This Form 8-K filing from Electronic Arts Inc. (EA) on June 18, 2009, primarily announces significant executive changes within the company. John Pleasants, Chief Operating Officer and President of Global Publishing, is departing. Simultaneously, EA is appointing John Schappert as the new Chief Operating Officer, with extensive responsibilities across publishing, online platforms, and development services. Schappert's return to EA, after a tenure at Microsoft, marks a key strategic move for the company. The filing also details the comprehensive compensation package offered to Mr. Schappert to secure his appointment. This includes a substantial base salary, a significant signing bonus, stock options, and both time-based and performance-based restricted stock units, the latter tied to specific non-GAAP net income targets. EA is also providing extensive relocation assistance, including a unique home purchase agreement to facilitate his move. These arrangements underscore EA's commitment to attracting and retaining key talent during a period of transition.

Key Highlights

  • 1John Pleasants, COO and President of Global Publishing, is departing EA as of June 18, 2009.
  • 2John Schappert has been appointed as the new Chief Operating Officer.
  • 3Schappert's new role will encompass Global Publishing, Online Platform Group, EA Interactive, and Central Development Services.
  • 4Schappert previously held senior roles at EA and most recently served at Microsoft Corporation.
  • 5Schappert's compensation package includes a $600,000 annual salary and a 75% target bonus.
  • 6EA will grant Schappert a $1 million signing bonus, 500,000 stock options, 75,000 restricted stock units, and 125,000 performance-based restricted stock units.
  • 7Extensive relocation assistance is provided to Schappert, including EA purchasing his current home.

Frequently Asked Questions

The main reason for this 8-K filing is to announce significant changes in Electronic Arts Inc.'s executive leadership. Specifically, it reports the departure of John Pleasants, the Chief Operating Officer and President of Global Publishing, and the appointment of John Schappert to the COO role.

John Schappert is the newly appointed Chief Operating Officer of EA. He has prior experience at EA, having served as COO of Worldwide Studios and Executive Vice President of EA’s Online Platform and Central Development Services Group. Before rejoining EA, he was a Corporate Vice President at Microsoft, overseeing Xbox LIVE and Microsoft Game Studios. In his new role, he will be responsible for Global Publishing, Online Platform Group, EA Interactive, and Central Development Services, among other areas.

John Schappert's compensation package is substantial and includes an annual base salary of $600,000, with a target bonus of 75% of his base salary. He will also receive a $1 million signing bonus to compensate for forfeited bonuses and equity from his previous role. Additionally, EA is granting him 500,000 stock options, 75,000 time-based restricted stock units, and 125,000 performance-based restricted stock units tied to the company's net income targets. EA is also covering extensive relocation expenses.

EA's agreement to purchase John Schappert's current home is a significant part of his relocation package. This is intended to allow him to use the equity in his existing home to purchase a new home in the Redwood City area. EA will then resell the home at its own expense and will cover any difference if the sale results in a loss compared to the fair market value. This demonstrates a strong incentive for Schappert to join EA and highlights the company's commitment to facilitating his move.