Electronic Arts Modifies Executive Bonus, Stock Plans
Electronic Arts Inc., the second- largest video-game maker, adopted an amended bonus plan for Chief Executive Officer John Riccitiello and other officials.
Under the plan, 75 percent of Riccitiello’s 2012 bonus will be based on adjusted earnings, revenue and digital sales, up from 65 percent previously, with the rest tied to individual performance and other yardsticks, the Redwood City, California- based company said today in a regulatory filing.
The filing followed one yesterday in which Electronic Arts agreed to appoint activist investor Ralph Whitworth to the board if he seeks a seat during a 7 1/2-month period starting in mid- September. In return, his San Diego-based Relational Investors abandoned efforts to elect three directors, according to another regulatory filing yesterday.
Jeff Brown, an Electronic Arts spokesman, said the compensation committee approves annual bonus changes every year and the filing wasn’t related to any others this week.
Whitworth declined to comment.
The board also changed executive-level stock award grants to base them on the company meeting certain performance goals instead of vesting over time, according to the new filing.
Electronic Arts rose 1 cent to $24.42 in Nasdaq Stock Market trading. The shares have gained 49 percent this year.
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