8-KLeadership ChangesExhibits & Filings

ELECTRONIC ARTS INC. 8-K Report, Executive Changes (Sep 17, 2013)

Filed September 17, 2013For Securities:EA

Summary

This 8-K filing by Electronic Arts Inc. (EA) announces a significant leadership change: the appointment of Andrew Wilson as the new Chief Executive Officer and a member of the Board of Directors, effective September 17, 2013. Mr. Wilson, previously Executive Vice President of EA SPORTS, brings extensive experience within the company, having joined in 2000. The filing also details Mr. Wilson's executive compensation package, including an annual base salary of $800,000 and a target bonus of 150% of his base salary. A substantial stock option grant of 1,000,000 shares, with a staggered vesting schedule, is also outlined. Furthermore, the company amended its EA Bonus Plan for Fiscal Year 2014, specifically detailing the performance metrics for the CEO's bonus, which will be heavily weighted towards financial performance (non-GAAP net revenue, gross profit, operating expenses, non-GAAP EPS, operating income) and include individual performance objectives and a Total Stockholder Return (TSR) component relative to the NASDAQ-100.

Key Highlights

  • 1Andrew Wilson appointed Chief Executive Officer and Board Director, effective September 17, 2013.
  • 2Wilson has a long tenure with EA, joining in May 2000 and holding various leadership roles, most recently as EVP of EA SPORTS.
  • 3New CEO Andrew Wilson's annual base salary set at $800,000.
  • 4Target bonus for CEO set at 150% of base salary.
  • 5Grant of 1,000,000 stock options to Mr. Wilson, vesting over approximately 3.5 years.
  • 6CEO's Fiscal Year 2014 bonus heavily tied to financial metrics: non-GAAP net revenue, gross profit, operating expenses, non-GAAP EPS, and operating income.
  • 7Bonus structure includes individual performance objectives and a Total Stockholder Return (TSR) modifier tied to NASDAQ-100 performance.

Frequently Asked Questions

Andrew Wilson has been appointed as the new Chief Executive Officer of Electronic Arts, effective September 17, 2013. He was also appointed as a director to the Board of Directors.

Mr. Wilson's compensation package includes an annual base salary of $800,000, a target bonus of 150% of his base salary, and an option to purchase 1,000,000 shares of EA common stock. The stock option vests over approximately 3.5 years.

The CEO's bonus for Fiscal Year 2014 will be funded 80% based on financial performance (non-GAAP net revenue, gross profit, operating expenses, non-GAAP EPS, operating income) and 20% based on individual performance and business objectives. The final payout will be subject to a multiplier (50%-150%) based on EA's Total Stockholder Return (TSR) relative to the NASDAQ-100.

Yes, Andrew Wilson has a long history with Electronic Arts, having joined the company in May 2000. He has held various leadership positions, most recently serving as Executive Vice President of EA SPORTS since August 2011.