Electronic Arts 2016 Annual Report Download - page 38

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Cash Bonus: Mr. Wilson’s objectives that the Board of Directors considered material in making the
determination of his fiscal 2016 cash bonus and the attainment of those objectives are set forth below:
Fiscal 2016 Objectives Target Actual(1)
Non-GAAP Financial & Digital Objectives (60% weight):
(In millions, except earnings per share and percentages)
Net Revenue ............................................................... $4,400 $4,566
Gross Profit ................................................................ $3,151 $3,261
Operating Expenses ......................................................... $1,986 $1,961
Diluted Earnings Per Share (based on share count of 331 million shares) ................ $ 2.75 $ 3.08
Operating Cash Flow ........................................................ $1,150 $1,223
Strategic & Operative Objectives (40% weight):
Console/PC Launches, Mobile Launches, New IP and Fiscal 2017 Readiness, Engagement
and Organizational Health .................................................. N/A N/A
(1) Appendix A to this Proxy Statement provides a calculation of non-GAAP financial measures from the Company’s audited financial
statements.
As a result of feedback from our stockholder outreach, we added a cash flow metric to the financial objectives of
our NEOs’ cash bonuses, including Mr. Wilson’s. In determining Mr. Wilson’s final cash bonus payout, the
Board of Directors considered the weighting and achievement of Mr. Wilson’s fiscal 2016 objectives set forth
above. Factors that the Board of Directors considered in determining Mr. Wilson’s individual performance
included: his leadership in the success of the Company’s fiscal 2016 game launches, including FIFA 16, Star
Wars: Battlefront, and Madden NFL 16; the Company’s increase in digital revenue, including in live services
such as the Ultimate Team mode in several of our EA Sports titles; the success of new products and services,
including mobile offerings such as Madden NFL Mobile and subscription programs such as EA Access and
Origin Access; the development of new IP; recognizing and fostering talent within the Company and
Mr. Wilson’s implementation of his strategy and direction for the Company.
Mr. Jorgensen, Executive Vice President and Chief Financial Officer
Base Salary & Bonus Target: In the first quarter of fiscal 2016, the Compensation Committee increased
Mr. Jorgensen’s base salary by 5% and maintained his target bonus opportunity at 100% of his base salary.
Mr. Jorgensen’s base salary was increased as a result of his performance during fiscal 2015, including his role in
improving operating margins, increasing cash provided by operations and reducing the Company’s operating
expenses.
Cash Bonus: To determine Mr. Jorgensen’s final cash bonus payout, the Compensation Committee took into
account that the Company exceeded its non-GAAP net revenue target and its non-GAAP earnings per share
target in fiscal 2016, as well as Mr. Jorgensen’s individual performance, including: his leadership of the
Company’s $1 billion investment grade bond offering and new $500 million share repurchase program;
continuing to improve cash provided by operations while controlling the Company’s operating expenses in the
fiscal year; and communications with investors and stockholders.
Mr. Söderlund, Executive Vice President, EA Studios
Base Salary & Bonus Target: In the first quarter of fiscal 2016, the Compensation Committee increased
Mr. Söderlund’s base salary by 8% and maintained his target bonus opportunity at 100% of his annual base
salary. Mr. Söderlund’s base salary was increased as a result of his performance during fiscal 2015, including the
success of products such as Dragon Age: Inquisition and FIFA 15.
Cash Bonus: To determine Mr. Söderlund’s final cash bonus payout, the Compensation Committee took into
account that the Company exceeded its non-GAAP net revenue target and its non-GAAP earnings per share
target in fiscal 2016, as well as Mr. Söderlund’s individual performance, including: his role in product quality
during fiscal 2016 (including FIFA 16 and Madden NFL 16); improving player satisfaction and engagement with
our products; the increase in digital revenue; the development of expansion packs and additional content for Star
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