Electronic Arts Inc. · NASDAQ:EA
Electronic Arts — Shareholder Meeting (July 2021)
20 slides from Electronic Arts's shareholder meeting presentation, Jul 27, 2021
Slide 1: Stockholder Outreach July 2021
1 Stockholder Outreach July 2021
Slide 2: Contents
● Business Overview ● Compensation Program Highlights ● Corporate Governance ● Corporate Responsibility / Response to COVID-19 Pandemic Contents 2
Slide 3: Business Overview
3 Business Overview
Slide 4: Deliver amazing games and content; live services; more platforms
1. Deliver amazing games and content ● Global presence with key franchises that include: FIFA; Battlefield; Madden NFL; Apex Legends; The Sims; Dragon Age; Mass Effect; Need for Speed 2. Offer live services that extend and enhance the experience ● FIFA Ultimate Team pioneered live services on consol
Slide 5: Growth: Topline to Cash
Growth: Topline to Cash 5 (in $ millions) 3,157 3,650 4,016 1,793 1,887 1,613 4,950 5,537 5,629 FY19 FY20 FY21 Full Game Live Services & Other Net Revenue 3,292 3,592 4,592 1,840 1,780 1,598 5,132 5,372 6,190 FY19 FY20 FY21 Net Bookings Full Game Live Services & Other 1,547 1,797 1,934 FY19 FY20 FY2
Slide 6: Financial and Operational Highlights
Financial and Operational Highlights • FY21 Financial Highlights ○ Fiscal 2021 resulted in record net revenue, net bookings and annual operating cash flow ○ Returned over $800 million to shareholders through our two-year, $2.6 billion stock repurchase program and quarterly dividend • Strong executio
Slide 7: Compensation Program Highlights
7 Compensation Program Highlights
Slide 8: Our Compensation Program Promotes Pay-For-Performance
8 Our Compensation Program Promotes Pay-For-Performance ● Pay-for-Performance ○ Our compensation programs are designed to attract and retain high-performing executives ○ FY21, 96% of our CEO pay and 91% of our NEO pay is at-risk compensation ○ Regularly benchmark against market practice and peers ●
Slide 9: Compensation program best practices
9 ✔ Structure executive compensation to link pay and performance ✔ Provide a high percentage of variable, at-risk pay; approximately 94% of NEO compensation is variable and at- risk ✔ Cap performance-based annual bonus awards ✔ Require our executives to satisfy robust stock holding requirements ✔ Co
Slide 10: Key Actions in Response to Stockholder Feedback (1/3)
Key Actions in Response to Stockholder Feedback (1/3) 10 Governance changes – New Compensation Committee Chair appointed in December 2020 and new independent consultant to the Compensation Committee engaged. What We Heard Our Actions and Perspective Special Equity Awards ● Concerns with the use of s
Slide 11: Key Actions in Response to Stockholder Feedback (2/3)
Key Actions in Response to Stockholder Feedback (2/3) 11 What We Heard Our Actions and Perspective PRSU Program Features ● Program should incorporate financial and operating metrics in addition to relative TSR ● Annual vesting is contrary to long-term nature of program Action: ● Added two additional
Slide 12: Key Actions in Response to Stockholder Feedback (3/3)
Key Actions in Response to Stockholder Feedback (3/3) 12 What We Heard Our Actions and Perspective Annual Bonus Program ● Would like to better understand our financial and non-financial goals and annual bonus payout determinations ● Enhanced disclosure of our annual bonus program structure, non- fin
Slide 13: New Entrants Have Increased Competition for Experienced Executive Games Industry Talent
New Entrants to the Interactive Entertainment Space Have Increased the Competition for Experienced Executive Games Industry Talent 13 *Note: King was acquired by Activision Blizzard in 2016; Bethesda (ZeniMax) was acquired by Microsoft in 2020. Competitors are based on a Western view only.
Slide 14: Board Approved Enhanced Fiscal 2021 Annual Equity Award for Mr. Wilson
The Board Approved an Enhanced Fiscal 2021 Annual Equity Award for Mr. Wilson in May 2020 for the Following Key Reasons 14 ● To drive transformational growth and long-term success ○ Mr. Wilson has the strategic vision necessary to transform EA into a digital interactive platform ○ The Board is commi
Slide 15: Corporate Governance
Corporate Governance constaer aye
Slide 16: Corporate Governance Highlights
● 25% Special Meeting Right ● Proxy Access. 3% / 3 years / greater of 2 directors or 20% of the Board ● Highly Engaged Lead Independent Director. Robust and well-defined duties ● Seven of Eight Board Nomineees are Independent ● Luis Ubinas elected Chair of Compensation Committee in light of need to
Slide 17: Board Nominees Reflect and Support Oversight of Long-term Strategy
Board Nomineees Reflect and Support Oversight of Long-term Strategy and Evolving Needs Larry Probst and Jay Hoag have announced they will be stepping down from the Board effective at the 2021 Annual Meeting; the Board is actively engaged in succession planning. Range of Tenure 0-5 6-10 > 10 45-54 55
Slide 18: Corporate Responsibility
18 Corporate Responsibility
Slide 19: Actions and Highlights; Response to COVID-19 Pandemic
Actions and Highlights ● Published inaugural Impact Report in November 2020. Aligned with SASB standards ● Publicly disclosed race/ethnicity/gender representation ● Leveraged Inclusion Framework to help studios develop more inclusive characters and stories across our games and services ● Launched Po
Slide 20: Electronic Arts
Electronic Arts