Form 4: Electronic Arts Executive Sells Shares Under 10b5-1 Trading Plan

Jacob J. Schatz, EVP, Global Affairs and CLO of Electronic Arts Inc., sold shares of common stock under a pre-arranged 10b5-1 trading plan.

Summary

• Jacob J. Schatz, an executive at Electronic Arts Inc., reported the sale of common stock on June 17, 2024.
• The sales were executed under a 10b5-1 trading plan established on May 11, 2023.
• A total of 1,000 shares were sold in multiple transactions at weighted average prices of $135.834, $136.835 and $137.49.
• Following the reported transactions, Mr. Schatz directly owns 30,317 shares of Electronic Arts Inc. common stock.
• Mr. Schatz was also granted 21,813 Restricted Stock Units (RSUs) on June 17, 2024, which vest in installments until May 17, 2027.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the document simply reports stock sales under a pre-arranged plan. There is no indication of positive or negative sentiment.

Industry Context

Executive stock sales are a common occurrence and are often pre-planned using 10b5-1 trading plans to avoid accusations of insider trading. These plans allow insiders to sell shares at predetermined times and prices.

Comparison to Industry Standards

• Executive compensation packages in the tech industry often include a mix of salary, stock options, and restricted stock units.
• The vesting schedule of the RSUs (one-third on May 17, 2025, and the remainder in approximately equal increments every six months thereafter until May 17, 2027) is a fairly standard vesting schedule for RSUs.
• The use of a 10b5-1 trading plan is a common practice among executives to sell shares in a compliant manner.

Stakeholder Impact

• The stock sale by an executive could have a minor impact on shareholder sentiment, but is unlikely to be significant given the use of a 10b5-1 trading plan.

Key Dates