What were the key executive changes during the fiscal year ended October 31, 2003?

The company saw significant leadership transitions. Jeffrey C. Lapin became Chief Executive Officer in January 2003, and Trevor Drinkwater was appointed Chief Operating Officer in November 2003. Kelly Sumner resigned as CEO in January 2003 but continued in a non-executive capacity, and Paul Eibeler resigned as President in June 2003.

How is executive compensation structured, and what incentives are in place?

Executive compensation for named executives includes base salaries, performance-based bonuses, and stock options. For instance, Ryan A. Brant, Chairman, received a substantial salary of $752,884 and a bonus of $2,909,500 in fiscal 2003, alongside significant stock options. The employment agreements for key executives like Mr. Brant and Mr. Lapin detail specific salary and bonus structures, often tied to company financial targets and performance.

What is the ownership structure of Take-Two Interactive Software, Inc. as of February 2004?

As of February 27, 2004, FMR Corp. was the largest shareholder, holding 14.4% of the common stock. Other significant institutional holders included J & W Seligman & Co. Incorporated (6.4%) and Waddell & Reed Investment Management Company (5.4%). Insiders like Ryan A. Brant held a smaller direct percentage, but combined with options, executive ownership is more substantial when considering equity compensation.

What were the main services provided by the independent auditor and the associated fees?

For the fiscal year ended October 31, 2003, the company paid its independent auditor, BDO Seidman, LLP (implied by Roedel's background, though the auditor isn't explicitly named in this section), approximately $4.8 million in total fees. This included significant audit fees of $2.9 million, which covered financial statement audits and, notably, amounts related to an SEC investigation and financial statement restatement. Substantial fees were also paid for tax services ($1.85 million).

TTWO 10-K Filed Mar 2, 2004

01—Abstract

Summary

Summary of the 10-K/A filed March 2, 2004. Cited figures are marked; the original filing is the authoritative source.

Take-Two Interactive Software, Inc.'s (TTWO) 10-K/A filing for the fiscal year ended October 31, 2003, highlights a company undergoing significant leadership changes and executive compensation adjustments.

The filing details the compensation packages for key executives, including substantial salaries and bonuses, alongside significant stock option grants. The company emphasizes its commitment to corporate governance with an independent Audit Committee, a Code of Ethics, and disclosures on Section 16(a) compliance, though it notes several late filings by insiders. The disclosure also includes information on beneficial ownership and equity compensation plans, indicating a material portion of executive compensation is tied to equity performance.

02—Key points

Key Highlights

The company has undergone significant executive leadership changes, with Jeffrey C. Lapin appointed CEO in January 2003 and Trevor Drinkwater as COO in November 2003.
Executive compensation, particularly for the CEO and Chairman, includes substantial base salaries, significant bonuses, and substantial stock option grants, indicating a strong tie to performance and long-term incentives.
The company has a robust governance structure with an independent Audit Committee, one of whom is a financial expert, and a Code of Ethics in place.
All directors are considered independent, with the Audit Committee composed entirely of independent directors.
Several executive officers and directors experienced late filings for Section 16(a) beneficial ownership reports, which the company notes but addresses.
FMR Corp. is the largest beneficial owner of common stock at 14.4%, followed by J & W Seligman & Co. and Waddell & Reed Investment Management Company.
Significant fees were paid to the independent auditor, including substantial amounts for audit-related services and tax services, with notable increases in audit fees related to an SEC investigation and financial statement restatement in fiscal 2003.

03—Questions

Frequently Asked Questions

What were the key executive changes during the fiscal year ended October 31, 2003?
The company saw significant leadership transitions. Jeffrey C. Lapin became Chief Executive Officer in January 2003, and Trevor Drinkwater was appointed Chief Operating Officer in November 2003. Kelly Sumner resigned as CEO in January 2003 but continued in a non-executive capacity, and Paul Eibeler resigned as President in June 2003.
How is executive compensation structured, and what incentives are in place?
Executive compensation for named executives includes base salaries, performance-based bonuses, and stock options. For instance, Ryan A. Brant, Chairman, received a substantial salary of $752,884 and a bonus of $2,909,500 in fiscal 2003, alongside significant stock options. The employment agreements for key executives like Mr. Brant and Mr. Lapin detail specific salary and bonus structures, often tied to company financial targets and performance.
What is the ownership structure of Take-Two Interactive Software, Inc. as of February 2004?
As of February 27, 2004, FMR Corp. was the largest shareholder, holding 14.4% of the common stock. Other significant institutional holders included J & W Seligman & Co. Incorporated (6.4%) and Waddell & Reed Investment Management Company (5.4%). Insiders like Ryan A. Brant held a smaller direct percentage, but combined with options, executive ownership is more substantial when considering equity compensation.
What were the main services provided by the independent auditor and the associated fees?
For the fiscal year ended October 31, 2003, the company paid its independent auditor, BDO Seidman, LLP (implied by Roedel's background, though the auditor isn't explicitly named in this section), approximately $4.8 million in total fees. This included significant audit fees of $2.9 million, which covered financial statement audits and, notably, amounts related to an SEC investigation and financial statement restatement. Substantial fees were also paid for tax services ($1.85 million).

04—Continue

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