Electronic Arts Inc. Fiscal Year 2003 Executive Bonus Plan Description

Summary

Electronic Arts Inc. has established a bonus plan for its executives for fiscal year 2003. Each executive's target bonus is set as a percentage of their base salary and is typically paid in two parts: one based on the company's earnings and another based on individual performance. Some executives may also receive a bonus tied to the performance of a specific business unit or product. Bonuses are paid after the fiscal year ends. No company performance bonus is paid if profits are less than 85% of the plan, and the maximum payout is capped at 200% of the target bonus.

EX-10.03 3 dex1003.txt DESCRIPTION OF REGISTRANT'S FY2003 EXEC BONUS PLAN EXHIBIT 10.03 ELECTRONIC ARTS INC. AND SUBSIDIARIES DESCRIPTION OF REGISTRANT'S FISCAL YEAR 2003 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 one of which 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. Bonuses are paid after the end of the fiscal year. If profits in any period are less than 85% 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% payout of the bonus target.