Jacob Schatz
ELECTRONIC ARTSAbout Jacob Schatz
Executive Vice President of Global Affairs & Chief Legal Officer at EA, leading Legal Affairs, Business Development, Corporate Development, and Government Affairs & Public Policy, with demonstrated impact on commercial partnerships, M&A, online safety, accessibility, and sustainability initiatives . Licensed attorney in California; he has served in EA’s senior legal roles since at least 2016, progressing from SVP & General Counsel to EVP & Chief Legal Officer/Corporate Secretary and ultimately EVP, Global Affairs & Chief Legal Officer . Company performance context for FY2025 (relevant to incentive metrics): total net revenue $7.463B, net bookings $7.355B, net income $1.121B, operating cash flow $2.079B .
Past Roles
| Organization | Role | Years | Strategic impact / scope |
|---|---|---|---|
| Electronic Arts (EA) | Senior Vice President, General Counsel & Corporate Secretary | As of Aug 2016 | Senior legal leadership; opinion signatory on S-8; corporate governance |
| Electronic Arts (EA) | Executive Vice President, General Counsel & Corporate Secretary | As of Aug 2019 | Executive legal leadership; equity plan filings and governance |
| Electronic Arts (EA) | Executive Vice President, Chief Legal Officer & Corporate Secretary | As of Aug 2022 | Expanded CLO remit; governance and equity plan administration |
| Electronic Arts (EA) | EVP of Global Affairs, Chief Legal Officer & Corporate Secretary | As of Aug 2024 | Added Global Affairs; corporate development and policy interface |
| Electronic Arts (EA) | Executive Vice President, Global Affairs & Chief Legal Officer | FY2025 | Oversees Legal Affairs, Business Development, Corporate Development, Government Affairs & Public Policy |
Fixed Compensation
| Fiscal Year | Base Salary (policy) ($) | Actual Salary Paid ($) | All Other Compensation ($) | Notes |
|---|---|---|---|---|
| FY2024 | — | 637,231 | 17,607 | Summary Compensation Table |
| FY2025 | 650,000 | 648,077 | 28,448 | Base salary set for FY2025; SCT amounts reflect paid salary and perqs detail below |
Perquisites detail FY2025 (insurance, 401k match, annual physical, cybersecurity, financial planning, EA games/in‑kind gifts; includes $1,562 tax reimbursements): total $28,448 .
Performance Compensation
Annual Cash Bonus (Executive Bonus Plan)
| Item | FY2025 |
|---|---|
| Target annual bonus ($) | 650,000 |
| Company bonus pool funding (%) | 91.7% |
| Individual Performance Modifier (IPM) | 118% |
| Actual bonus paid ($) | 700,000 |
| Weighting of company components | 50% financial (non‑GAAP net revenue & non‑GAAP diluted EPS), 50% business performance |
Key FY2025 achievements underpinning IPM: managed external partnerships/licensing (incl. EA SPORTS College Football 25), led platform partnerships (Sony/Microsoft/Nintendo/Apple/Amazon Luna), oversaw TRACAB Technologies acquisition, advanced Player Safety & Inclusion (23 patents added to accessibility pledge), achieved carbon neutrality in NA/EU ops, and continued regulatory/policy oversight (monetization, online safety, privacy, design) . FY2024 IPM: 112.73% .
Long-Term Equity Incentives (structure and FY2025 awards)
- Structure and weighting: for Schatz, 50% PRSUs and 50% RSUs; PRSUs have three components: annual net bookings and non‑GAAP operating income tranches (earned annually, vest at end of 3‑year period), 3‑year relative TSR, and starting FY2025, a 3‑year absolute TSR modifier; RSUs vest over a 35‑month time-based schedule .
- FY2025 target performance-based RSUs: $3,000,000 .
FY2025 Grants of Plan‑Based Awards (selected details)
| Award/Metric | Grant Date | Threshold (#) | Target (#) | Max (#) | Grant Date FV ($) |
|---|---|---|---|---|---|
| PRSUs – rTSR (3‑yr) | 6/17/2024 | 2,185 | 7,286 | 14,572 | 1,123,501 |
| PRSUs – aTSR (3‑yr modifier) | 6/17/2024 | 0 | 8,180 | 16,360 | 253,171 |
| PRSUs – Operating Metrics (OM; annual NB & non‑GAAP OI) | 6/17/2024 | 1,210 | 4,842 | 9,684 | 665,920 |
| PRSUs – OM (FY2024 tranche disclosed in FY2025 table) | 6/17/2024 | 1,186 | 4,745 | 9,490 | 652,580 |
| PRSUs – OM (FY2023 tranche disclosed in FY2025 table) | 6/17/2024 | 1,085 | 4,341 | 8,682 | 597,018 |
| RSUs (time‑based) | 6/17/2024 | — | 21,813 | — | 2,999,942 |
Vesting mechanics and dates
- PRSUs (rTSR and aTSR): performance over FY2025–FY2027; any earned units eligible to vest on May 16, 2027 .
- PRSUs (OM): FY2025 tranche earned and eligible to vest May 16, 2027; FY2026–FY2027 portions disclosed when targets set .
- RSUs: vest as to 1/2 one month prior to first anniversary of grant; 1/8 every six months thereafter until fully vested .
Pay outcomes (SCT)
| Fiscal Year | Stock Awards ($) | Non‑Equity Incentive Plan Comp ($) | Total ($) |
|---|---|---|---|
| FY2024 | 5,511,786 | 750,000 | 6,916,624 |
| FY2025 | 6,292,132 | 700,000 | 7,668,657 |
Stock vested FY2025 (supply overhang proxy)
| Metric | FY2025 |
|---|---|
| Shares acquired on vesting (#) | 31,231 |
| Value realized on vesting ($) | 4,188,275 |
| Stock option exercises | None in FY2025 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (6/17/2025) | 29,948 shares; <1% of outstanding; no options/RSUs exercisable within 60 days disclosed for Schatz |
| Shares outstanding (6/17/2025) | 251,271,874 |
| Ownership guidelines | Section 16 officers must maintain minimum ownership multiples of salary; tested annually; if non‑compliant must hold 50% of net after‑tax vested shares; as of May 2025, all Section 16 officers either met requirements or were within the ~50‑month compliance window |
| Hedging/pledging | Directors and Section 16 officers prohibited from hedging or pledging EA stock; no margin or derivatives trading |
Outstanding awards snapshot (select FY2025 year‑end entries)
| Type | Units | Notes |
|---|---|---|
| Unearned PRSUs – aTSR (FY2025–FY2027) | 8,180 | Eligible to vest 5/16/2027 based on aTSR modifier |
| Unearned PRSUs – rTSR (FY2025–FY2027) | 7,286 | Eligible to vest 5/16/2027 based on rTSR |
| Earned PRSUs – OM (FY2025 tranche) | 3,466 | Eligible to vest 5/16/2027 |
| RSUs (time‑based) | 21,813 | 35‑month schedule |
Employment Terms
- No individual employment agreement; unvested equity generally forfeited on termination absent death, disability, or change in control (CIC) treatment .
- Clawback: recovery of erroneously awarded incentive comp for the three completed fiscal years preceding any required restatement; equity awards subject to forfeiture/recapture upon certain misconduct tied to restatements .
- Executive Officer Cash Severance Policy caps cash severance without shareholder ratification at 2.99x salary+target bonus .
- CIC Plan (double‑trigger): for SVP+ (incl. Schatz) upon qualifying termination in connection with a CIC, lump sum cash = 1.5x (CEO 2x) salary+target bonus, 18 months COBRA (CEO 24 months), full vesting of time‑based equity; PRSUs follow award terms; no 280G gross‑ups (cut‑back if beneficial) .
Potential payments upon termination (as of 3/29/2025; using $144.25/share)
| Scenario | Cash Severance ($) | RSUs ($) | PRSUs ($) | Other ($) | Total ($) |
|---|---|---|---|---|---|
| Death | — | 5,040,384 | — | — | 5,040,384 |
| Disability | — | 1,755,234 | — | — | 1,755,234 |
| Qualifying Termination (CIC) | 1,950,000 | 5,040,384 | 6,596,553 | 54,745 | 13,641,682 |
Performance & Track Record
- FY2025 achievements: external partnerships/licensing (incl. EA SPORTS College Football 25), platform partnerships (Sony/Microsoft/Nintendo/Apple/Amazon Luna), TRACAB Technologies acquisition, Player Safety & Inclusion (23 patents added to accessibility pledge), carbon neutrality in NA/EU operations, and oversight of regulatory/policy priorities (monetization, online safety, privacy, product design) .
- FY2024 IPM: 112.73% reflecting outperformance vs individual goals in prior year .
- Company FY2025 performance context (key for comp design): revenue $7.463B; net bookings $7.355B; net income $1.121B; operating cash flow $2.079B .
Compensation Structure Analysis
- Mix shift and risk alignment: Schatz’s LTI split is 50% PRSUs / 50% RSUs; FY2025 introduced absolute TSR modifier on top of rTSR and operating metrics, increasing market‑based alignment while maintaining operating discipline .
- Cash vs equity: Base salary modestly increased (~1.56% YoY) to $650,000; stock awards rose YoY, with FY2025 SCT stock awards of $6.29M vs $5.51M in FY2024; non‑equity incentive decreased to $700k from $750k .
- Vesting cadence: RSUs vest frequently (semi‑annual after first‑year tranche), contributing to a steady cadence of stock releases; PRSUs primarily cliff‑vest in 2027, deferring significant value realization and enhancing retention .
Risk Indicators & Red Flags
- Hedging/pledging prohibited for Section 16 officers (mitigates alignment risk) .
- No tax gross‑ups on 280G; CIC plan uses cut‑back if beneficial to executive (shareholder‑friendly) .
- Clawback policy fully compliant with Dodd‑Frank and extends to equity award misconduct scenarios .
- No individual employment contract and severance capped policy reduce severance inflation risk .
Equity Ownership & Vesting/Selling Pressure Signals
| Indicator | Observation |
|---|---|
| Vested in FY2025 | 31,231 shares vested; $4.19M realized value, indicating ongoing release of shares from RSUs/PRSUs |
| Near‑term vesting | RSUs continue semi‑annual vesting; creates periodic supply; PRSUs largely cliff in 2027 (rTSR/aTSR/OM) |
| Ownership vs guidelines | Section 16 officers either met or within compliance window; additional mandated holding (50% of net shares) applies until compliant |
| Pledging | Prohibited (reduces forced‑sale risk) |
Investment Implications
- Alignment and retention: Balanced 50/50 PRSU/RSU mix plus addition of absolute TSR in FY2025 strengthens market‑ and operations‑linked alignment; cliff‑vesting PRSUs in 2027 represent meaningful retention value, with CIC double‑trigger and no gross‑ups viewed favorably by governance‑sensitive investors .
- Supply dynamics: Semi‑annual RSU vesting and FY2025 realized vesting of 31,231 shares ($4.19M) indicate ongoing, programmatic insider share releases; however, anti‑pledging rules and ownership‑holding requirements mitigate abrupt selling pressure .
- Pay for performance: FY2025 bonus outcomes reflect company pool (91.7%) and above‑target IPM (118%) tied to clear achievements (licensing, partnerships, TRACAB acquisition, accessibility and sustainability progress), consistent with disclosed bonus framework weighting 50% financial/50% business for Schatz .