The transition towards next generation consoles has not been easy. In fact, there have been numerous bumps in the road. However, console makers are not the only passengers on the ride. Video game publishers are also feeling the bumps these days.
One of the leaders in the industry, Electonic Arts, has seen its shares decline 18 percent over the past two years. However, according to a report published by Thestreet.com, Electronic Arts has proposed a plan that could offer some assistance for its employees.
EA is allowing its employees to exchange their stock options that are currently underwater for full shares of stock. EA’s "underwater options may not be sufficiently effective as performance and retention incentives," the company stated in a proxy statement. "We believe that to enhance long-term stockholder value we need to maintain competitive employee compensation and incentive programs that will assist us to motivate and retain our employees."
Better than that, certain key employees of EA will also receive additional stock and options as "retention awards." Shareholders still need to approve the plan and the company will ask them to do so at its upcoming annual meeting being held on July 27.
According the Thestreet.com, the retention awards do not need shareholder approval but EA is "separately asking investors to approve a plan that will allow for future grants of restricted shares." Given that EA’s stock has continued to fall over the past two years, it may be a tough sell. We will simply have to wait and see just how the shareholders feel about the employees of Electronic Arts.
