Electronic Arts executives will not be receiving their expected raises this year, because shareholders voted against its compensation plans (via Ars Technica).
They chose to do this following pressure from activist investor groups which rallied against the “deeply flawed” original plan. Resultantly, almost 70 per cent of Electronic Arts’ voting shares were not in favour of the payments which would have been doled out to executives.
The plan apparently would have seen CEO Andrew Wilson receive a proposed $21.37 million in total compensation in this fiscal year. Chief financial officer Blake Jorgensen would have gotten $19.5 million, chief studios officer Laura Miele would have gained $16.1 million, and chief technical officer Kenneth Moss would have snagged $14.2 million. According to Ars Technica, these are very significant raises compared to the previous fiscal year, and reflect Electronic Arts’ continued profits.
“Shareholders issued a resounding rebuke of Electronic Arts’ deeply flawed executive pay practices that does not incentivize executives to create long-term value,” said Dieter Waizenegger (executive director at union-adjacent CtW Investment Group) in a statement. “This vote is a clarion call for the board to stop piling awards on top of awards for top executives and make sure that the company develops a pay philosophy that is focused on talent development and retention throughout all levels of the company.”
As announced in its latest results, Electronic Arts will be launching 14 new games before the end of the fiscal year. “That includes four new EA Sports titles—FIFA, Madden, NHL, and one more unannounced sports game—all of which deliver on the mix of creativity, authenticity, and quality that sets EA Sports apart,” said CEO Andrew Wilson at the time. “Our FY21 plans also include four more games drawing on the breadth of our IP, from Command & Conquer Remastered to unannounced games for our console and PC players.”