The report by Electronic Arts (EA) to the U.S. Securities and Exchange Commission shed light on the payouts due to its executives as a result of the upcoming sale of the company. For instance, it was revealed that CEO Andrew Wilson will receive a rather substantial sum.
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According to the document, for his shares and stock options in EA, Wilson will receive $105.93 million. However, there's a catch: this money will not be paid in a lump sum but in installments over a long period. The exact timeframe is not specified.
For comparison, the stock payouts for other EA executives are as follows:
- EA Entertainment President Laura Miele — $44.4 million;
- Chief Financial Officer Stuart Canfield — $33.4 million;
- Chief People Officer Mala Singh — $24.6 million;
- Chief Legal Officer Jacob Schatz — $24.6 million.
In addition, EA revealed the size of Wilson's "golden parachute" — the amount to be paid to the top executive if he is dismissed. In such an event, the head of EA would be entitled to $12.4 million.
However, as of now, there is no immediate threat of Wilson being dismissed. At the end of September, EA confirmed that he will continue to lead the company even after the sale is completed.
It is worth noting that the new owners of EA will be a consortium consisting of the Sovereign Fund of Saudi Arabia, Silver Lake, Affinity Partners, and several other investors. They will acquire the company for $55 billion.
Update: The payouts turned out to be a bit more complex. The $105.93 million is also part of Wilson's "golden parachute" (with all compensation articles considered, it totals $118.36 million). The EA head will be able to receive the money only if he is dismissed within 18 months after the deal.