EA shares tumble after CEO resignation
By
Eddie Makuch, News Editor
Shares slumped 8.3 percent Tuesday following John Riccitiello's announced departure from FIFA, Battlefield publisher.
Shares of Electronic Arts tumbled Tuesday, following Monday's announcement that six-year CEO John Riccitiello had resigned from the publisher.
At market close yesterday, EA's stock value was down 8.3 percent to $17.15, after news that the executive would leave effective March 30.
The market opens today at 9:30 a.m. EDT.
Riccitiello explained in his resignation letter that EA has "fallen short" of the internal operating plan set one year ago. "EA's shareholders and employees expect better and I am accountable for the miss," he said.
As part of Riccitiello's separation agreement with EA, he will continue to draw a salary for 24 months and maintain vesting of unvested options until Nov. 30, 2013, with those stock options exercisable until Feb. 28, 2014.
According to The Wall Street Journal, Riccitiello's total exit package is valued at around $4.7 million, though this figure could balloon further if EA stock bounces back.
By
Eddie Makuch, News Editor
Eddie Makuch (Mack-ooh) is a News Editor at GameSpot. He works out of the company's Boston office in Somerville, Mass., and loves extra chunky peanut butter.
100 comments
more of tumble then the tumble that took back in 2009 that they never recovered from? lmao. EA use to be great game company they have not been for a long time
1 Like So a guy that is nearly bankrupting a company gets paid 4.7 millions? WTF? This should be a crime.
@nurnberg That's just about any CEO. They always get a hefty exit package, aka a golden parachute.
It's just been good news after good news lately If i get up tomorrow and EA declares bankruptcy selling off all their brands to better company's(Will never happen but a man can dream).
Then i'm going to have to ask whats the holiday cause otherwise I'm making a new one (^.^)b
9 Like "Riccitiello's total exit package is valued at around $4.7 million"
Why can't I get $4.7 million for screwing up?
@Shango4 Does this mean that there will be a crash this year, because it would by the looks of it
1 Like and thats the failure of stock markets.
ea plumbing down for some time now (star wars online flop, dead effect 3, sims etc)
nothing happens
the ceo resigns, and then the shares drop (way more than they should)
poor stock holders, can you think for once and act cool?
8 Like This is what I don't get in today's supposedly non-rigged capitalistic market. A CEO can perform terribly, even run his company into bankruptcy - avoiding and destroying the pensions of the workers in the corporation - but can still walk away with a 4.7 million package.
Am I the only one that this seems a bit imbalanced?
3 Like @jamenta8 Meh, look at the banking scandals that started the GLOBAL recession... The ones responsible are still sitting on their millions, unaffected and unpunished, while the rest of the world limps on.
And then the US govt is too afraid to hit HSBC hard for working with terrorists/drug cartels/pretty much every illegal business available because they're afraid that hitting them too hard could destabilise the banking system.
The bigger you are, the less you have to answer for...
1 Like @jamenta8 the mindset of the ones who control in big or small ways the industry/economy in general is way beyond bad
the golden boys and their prevalent attitude has deteriorated this world. :(
6 Like he has a 2 year vacation and 4.7 million in the bank--- this is a guy who failed? It sounds like he won.
I figured it'd go up. I mean your chances of survival improve after the cancerous tumor is removed.
1 Like You know what that means.... the next Madden will be a total REHEAT with 10 cents put into the development.
1 Like It will rebound once EA:s next-gen games come out, you can't keep a "good" man down. EA says that they are positioned correctly to take advantage of next-gen and I believe they're right. Not because EA is right or righteous in any way, but because people won't suddenly stop buying their games.
EA stock will not rise if the sales slump, there has to be an end to the masses of sheep out there.
1 Like @torres_unix sad part is they have a diversified games portfolio. ME, Dead Space, EA Sports, Battlefield. Gamers might boycott a lot of EA games but still have a weak spot for their favorite franchise. EA has done well at buying IPs
Shit, I might buy some stock in EA. I mean once people realize how terrible this guy was at running a company it has to go back up soon.
@sideshowboots The lowest it dropped down to was around $10 each, so i doubt it. If they continue to mess up, then yes it will go even lower.
1 Like If someone could spread a Meme about boycotting EA, and make it as popular as Gangnam Style or one of those pointless things we all waste our time watching at work, this would be the time to do it. We might actually have a chance at bringing down one of the giants, some damage to their wallets wouldn't hurt either. At the very least it might actually make them rethink how they treat gamer's and franchises.
2 Like Nice chunk of change. Meanwhile the publisher is saying that piracy is the reason for their developer's problems. Yeah ok.
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