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.
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
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
"Riccitiello's total exit package is valued at around $4.7 million"
Why can't I get $4.7 million for screwing up?
and thats the failure of stock markets.
ea plumbing down for some time now (star wars online flop, dead effect 3, sims etc)
the ceo resigns, and then the shares drop (way more than they should)
poor stock holders, can you think for once and act cool?
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?
@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...
@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. :(
he has a 2 year vacation and 4.7 million in the bank--- this is a guy who failed? It sounds like he won.
You know what that means.... the next Madden will be a total REHEAT with 10 cents put into the development.
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.
@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
@torres_unix Maybe in another world, but not this one.
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.
This belongs here...
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.
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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