EA adopts new bonus scheme

An Electronic Arts financial filing has unveiled the new bonus scheme that the company has adopted, offering details on the framework upon which cash incentives will be paid to high-performing employees.

The scheme, which is an amendment of the previous version, will cover the performance of selected staff from the beginning of July to the end of March and has been implemented with the intention to "attract, motivate and retain talent by providing eligible employees with incentive compensation based upon the achievement of selected performance goals."

The plan will be open to "regular status employees... who are chosen solely at the discretion of the Company" and the amount paid will depend on five factors:

• - The participant's annual target bonus
• - The participant's individual performance
• - The Company's financial performance as compared to pre-determined performance targets
• - The participant's business unit's performance as compared to pre-determined targets
• - Such other business-related performance measures as the Company deems appropriate to accomplish a business purpose

There are various other conditions attached to the scheme, including the amount of bonus-applicable work undertaken, but the plan also outlines the possibilities for staff that overachieve.

"In the event a performance measure is achieved above the pre-determined targets, the bonus payable for that component could exceed 100 per cent of the target payment applicable to that component but not more than 200 per cent," reads the filing. "In the case of extraordinary job performance and with CEO approval, a participant may receive up to a maximum bonus payment of 300 per cent of base salary."

The publisher reported last week that its full year 2009 revenues were up 15 per cent over the previous year, despite a fall in Q4 numbers. The company's share price was down 0.1 per cent to USD 20.17 at close yesterday.