Electronic Arts Inc. Fiscal Year 2005 Executive Officer Bonus Plan Description
Electronic Arts Inc. has established a bonus plan for its executive officers for fiscal year 2005. Bonuses are based on a percentage of each executive's base salary and are determined by company earnings, individual contributions, and, for some, business unit or product performance. Bonuses are paid after the fiscal year ends. No company performance-based bonus is paid if profits fall below 85% of the plan, while higher profits can increase bonus payouts up to 200% of the target amount.
Exhibit 10.07
ELECTRONIC ARTS INC. AND SUBSIDIARIES
DESCRIPTION OF REGISTRANT’S FISCAL YEAR 2005
EXECUTIVE OFFICER BONUS PLAN
Target annual bonuses are set for each executive officer based upon a percentage of base salary. Bonuses for executive officers reporting to the Chief Executive Officer are generally paid in two parts, one of which relates only to the Company’s earnings results, and one of which is discretionary and is measured against each individual’s contributions. Other executive officers have a third part which relates to a specific business unit’s or product’s financial performance. Bonuses are paid after the end of the fiscal year. If profits in any period are less than 85 percent of the Company’s plan, no bonus based on the Company’s performance may be 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 percent payout of the bonus target.
