Electronic Arts Inc. Fiscal Year 2001 Executive Bonus Plan Description

Summary

Electronic Arts Inc. has established an executive bonus plan for fiscal year 2001, setting target annual bonuses for executives as a percentage of their base salary. Bonuses are paid after the fiscal year and are based on company earnings, individual executive contributions, and, for some, specific business unit or product performance. No company performance bonus is paid if profits fall below 85% of the plan, while exceeding profit targets can increase bonus payouts up to 200% of the target amount.

EX-10.03 3 0003.txt EXECUTIVE BONUS PLAN EXHIBIT 10.03 ELECTRONIC ARTS INC. AND SUBSIDIARIES DESCRIPTION OF REGISTRANT'S FISCAL YEAR 2001 EXECUTIVE BONUS PLAN Target annual bonuses are set for each executive based upon a percentage of base salary. Bonuses are generally paid in two parts, one of which relates only to the Company's earnings results, and the second part is discretionary and is measured against each individual executive's contributions. Some executives may have a third part which relates to a specific business unit's or product's financial performance achievement. Bonuses are paid after the end of the fiscal year. If profits in any period are less than 85% of plan, no bonus based on the Company's performance is paid for that period. If profits exceed plan during a period, the bonus rate is accelerated for the incremental profits above plan, with a maximum of 200% payout of the bonus target.