EA shareholders urged to cut executive bonuses

CtW Investment Group is concerned about large bonuses in the form of shares for EA’s finance and technical directors — Blake Jorgensen and Kenneth Moss, respectively. They were rewarded for their achievements in fiscal year 2018 (in the amount of $17 million), and then again in fiscal year 2020 ($13 million). These grants turned out to be higher than the standard annual ones prescribed in the contracts.

Representatives of the group in their letter drew the attention of the publisher’s shareholders to the fact that the cost of EA is gradually decreasing, and the staff is being reduced. Awarding top managers for such “successes” is not so right, the document says.

CtW Investment Group also points out that the period between old and new incentives is too short: the deadline for the first ones has not even ended yet. The group suspects that EA is trying to cover up the loss of revenue by providing cashless grants to executives.

“(Electronic Arts) has erroneous ideas that managers need to be stimulated beyond the usual contractual obligations,” writes the executive director of CtW Investment Group. “EA’s top managers already have enough reasons (including annual grants) to maintain and improve efficiency.”

He added that CtW Investment Group recognizes “that talented managers need to be retained,” but does not believe that such incentives are intended for this purpose.

The group called on EA stockholders to put the issue to a vote in August. The publisher’s annual shareholders’ meeting will be held next month.

Earlier, CtW Investment Group also criticized the too high incomes of Bobby Kotick, the CEO of Activision. After that, 43% of Activision Blizzard shareholders voted to cut executive bonuses.

Also on the topic:

• Electronic Arts earned $1.3 billion in July-September. Sales drivers — games about sports and Apex LegendsElectronic Arts will receive a $1.7 billion tax break.
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