Thu, Oct 03, 2013 | 21:51 BST
EA cuts executive chairman Larry Probst’s annual salary now that he’s no longer acting CEO
On October 1, EA filed a Form 8-K with the US Securities and Exchange Commission, noting a change in Compensatory Arrangements of Certain Officers. Basically, what this means, is that EA has cut the salary of executive chairman Larry Probst from $1.03 million to $515,000 annualized, minus applicable deductions.
So, doing the math, it looks like he will be making $785,000 a year less than he was previously now that he is no longer acting CEO in lieu of EA being without one.
On September 30 upon the recommendation of the Compensation Committee, the Board of Directors determined that as a result of the appointment of Andrew Wilson as CEO, the salary of Probst would be reduced.
In addition, the Board continued to reserve the option to award Probst a one-time discretionary bonus, with the amount, if any, to be determined by the Board at the end of his service as executive chairman.
He will not receive further cash retainer fees for his service as a member of the Board while performing the role of executive chairman.
Probst was appointed as executive chairman in March 2013 after John Riccitiello left the firm. As acting CEO he was given a substantial raise, but now that the firm has filled the position, the firm is no longer beholden to the $1.03 million salary.
So, while this sounds like a massive cut to the man’s wallet, the raise was only a temporary thing.