Electronic Arts 2016 Annual Report Download - page 10
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EXECUTIVE COMPENSATION HIGHLIGHTS
The design of our compensation programs is guided by a compensation philosophy based on three core principles
intended to promote a pay-for-performance approach to executive compensation:
Principle 1 — Cash Compensation: A significant portion of each NEO’s cash compensation should be at risk
based on the annual financial and operational performance of the Company, in addition to the NEO’s individual
performance;
Principle 2 — Equity Compensation: A significant portion of each NEO’s total compensation should be
provided in the form of long-term equity to enhance alignment between the interests of our NEOs and our
stockholders and to promote long-term retention of a strong leadership team in an industry that is highly
competitive for executive talent; and
Principle 3 — Target Total Direct Compensation: The target total direct compensation package for each NEO
should be consistent with market practices for executive talent, and reflect each NEO’s individual experience,
responsibilities and performance.
Program Design and Best Practices
Our executive compensation programs are designed to align the interests of our executives with the interests of
our stockholders. Some of the executive compensation “best practices” we employ include:
What We Do What We Don’t Do
ÍIncorporate both time-based and performance-
based RSUs
ÈHave a “single-trigger” change in control plan
ÍEliminated stock options from our equity mix in
fiscal 2016 after stockholder feedback
ÈProvide excise tax gross-up upon a change of
control
ÍRequire our executives and directors to satisfy
stock ownership guidelines
ÈHave executive employment contracts (other
than required by local jurisdictions)
ÍProhibit all employees and directors from
engaging in hedging transactions in EA stock
and prohibit directors and executives from
pledging EA stock
ÈReprice options without stockholder approval
ÍConduct annual “say on pay” advisory votes
ÍRegularly solicit feedback from our largest
stockholders on our executive compensation
programs
ÍRecover equity compensation for misconduct in
the event of a financial restatement
ÍAlign performance-based equity vesting with
stockholder interests
ÍProvide substantial portion of total compensation
to executive officers as performance-based
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