8-KLeadership ChangesExhibits & Filings

ELECTRONIC ARTS INC. 8-K Report, Executive Changes (May 20, 2010)

Filed May 20, 2010For Securities:EA

Summary

Electronic Arts Inc. (EA) filed an 8-K on May 20, 2010, primarily detailing an addendum to its Discretionary Bonus Plan for fiscal year 2011. This addendum, adopted by the Compensation Committee on May 17, 2010, modifies how bonuses will be determined for eligible employees, including executive officers. The key change lies in the weighting of performance metrics, shifting significant emphasis towards individual performance and specific business objectives for most employees. For all eligible participants except the CEO, 80% of their bonus will be based on individual performance and measurable business objectives, with only 20% tied to the overall company's financial performance. This structure aims to incentivize focused execution and achievement at both the individual and business unit levels. The report also specifies the bonus structure for CEO John S. Riccitiello, where 65% of his bonus will be linked to company financial performance, with key metrics including non-GAAP earnings per share, non-GAAP net revenue, and digital revenue targets, while the remaining 35% will be based on his individual performance and other financial/operational objectives.

Key Highlights

  • 1Electronic Arts adopted an addendum to its Discretionary Bonus Plan for fiscal year 2011 on May 17, 2010.
  • 2The addendum revises the performance metrics and weighting for determining annual bonuses for eligible employees.
  • 3For most employees (excluding the CEO), 80% of their fiscal 2011 bonus will be based on individual performance and business unit objectives.
  • 4Only 20% of the bonus for most employees will be tied to the overall company's financial performance.
  • 5CEO John S. Riccitiello's bonus structure is weighted differently: 65% based on company financial performance (non-GAAP EPS, non-GAAP net revenue, digital revenue targets) and 35% on individual performance.
  • 6Cash bonuses awarded under the plan for fiscal 2011 are expected to be paid around June 2011.
  • 7The filing includes Exhibit 10.1, the full text of the Electronic Arts Discretionary Bonus Plan Addendum.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce the adoption of an addendum to Electronic Arts' Discretionary Bonus Plan for fiscal year 2011. This addendum outlines the updated criteria and weightings for calculating employee bonuses for the upcoming fiscal year.

For most eligible employees, excluding the Chief Executive Officer, 80% of their fiscal 2011 bonus will be determined by their individual performance and the achievement of specific, measurable business objectives. The remaining 20% will be based on the company's overall financial performance.

For CEO John S. Riccitiello, 65% of his fiscal 2011 bonus is tied to company financial performance, specifically focusing on non-GAAP earnings per share, non-GAAP net revenue, and digital revenue performance targets. The remaining 35% will be based on his individual performance and other financial/operational objectives.

Cash bonuses awarded under the plan for fiscal 2011 are anticipated to be payable in or around June 2011 to all eligible regular status employees, including executive officers.