Electronic Arts 2013 Annual Report Download - page 43

Proxy Statement
Base Salary and Bonus Target: In the first quarter of fiscal 2013, the Committee elected to increase
Mr. Gibeau’s base salary by 13%, while his bonus target percentage remained unchanged at 100% of his annual
base salary. Mr. Gibeau’s base salary was increased as a result of his individual performance, his increased
responsibilities as President of EA Labels, and to better align his cash compensation with the market.
Cash Bonus Award: In fiscal 2013, Mr. Gibeau was eligible for an annual cash bonus. Prior to being awarded a
bonus, Mr. Gibeau requested that he not be awarded a bonus for fiscal 2013 due to the mixed financial and
operational results of the EA Labels in fiscal 2013. The Committee approved this request.
Equity Awards: In June 2012, Mr. Gibeau was granted performance-based RSUs with a target vesting of
100,000 shares. In July 2012, Mr. Gibeau was granted the time-based portion of his annual equity award of
100,000 RSUs with a three year pro-rata vesting schedule and an additional retention award of 300,000 time-
based RSUs, which will “cliff vest” in May 2015. The time-based RSUs were granted in July as they were
approved by the Committee contingent upon stockholder approval of an amendment to the 2000 Equity Incentive
Plan at the 2012 Annual Meeting of Stockholders. The time-based equity awards granted to Mr. Gibeau in fiscal
2013 utilized both annual vesting over three years and a long-term “cliff vesting” to deliver value in years one
and two, while emphasizing retention through three years. As a result, 73% of the target equity shares granted to
Mr. Gibeau in fiscal 2013 will be eligible to vest in fiscal 2016.
As a result of these decisions, Mr. Gibeau’s fiscal 2013 compensation declined by 35% as compared to fiscal
2012.
Mr. Jorgensen
Mr. Jorgensen joined the Company in September 2012 as our Executive Vice President and Chief Financial
Officer. In this role, Mr. Jorgensen oversees the Company’s global finance and accounting operations.
Mr. Jorgensen brings to the Company his experience in on-line commerce and entertainment, as well as in
consumer goods and international markets.
Base Salary and Bonus Target: In conjunction with his offer of employment with the Company, the Committee
approved an annual base salary of $650,000 and a bonus target of 100% for Mr. Jorgensen. The Committee
approved Mr. Jorgensen’s base salary and total compensation based on his skills, his target total cash
compensation at his former employer Levi Straus & Co. and to align his base salary and target total cash
compensation with his internal peers.
Cash Bonus Award: Mr. Jorgensen’s fiscal 2013 cash bonus award was $269,208, which corresponds to 71% of
his target bonus opportunity (adjusted on a pro rata basis to reflect that Mr. Jorgensen joined the Company in
September 2012). To determine Mr. Jorgensen’s cash bonus award, the Committee took into account the
Company’s performance against our non-GAAP revenue and non-GAAP earnings per share targets, as well as an
overall evaluation of Mr. Jorgensen’s strategic and operational achievements. The achievements considered by
the Committee included: enhanced focus on gross margin and cash flow, helping to manage our operating
expenses and investor relations efforts.
New Hire Cash and Equity Awards: Upon joining the Company, Mr. Jorgensen was granted 200,000 time-
based RSUs, of which 25% of the shares will vest on each of the 12, 24, 36 and 48-month anniversaries of the
grant date. In addition, Mr. Jorgensen received a cash sign-on bonus of $350,000. The Committee approved this
number of RSUs and the cash sign-on bonus to induce Mr. Jorgensen to accept the Company’s offer of
employment and offset compensation he forfeited when he left his prior company. Mr. Jorgensen will receive
performance-based RSUs as a part of his fiscal 2014 annual equity award.
Mr. Söderlund
Mr. Söderlund serves as Executive Vice President, EA Games Label. In his role, he has responsibility for the
product development and worldwide product management for all packaged goods and online offerings for the EA
Games Label. Mr. Söderlund was promoted to this role in August 2011. Mr. Söderlund is located in Sweden and
is paid in Swedish kronor.
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