EA's chief executive officer John Riccitiello has announced that he will resign his position on 30th March following the company's failure to meet internal financial targets. Former CEO Larry Probst will serve as executive chairman while EA's board searches for a replacement, with EA Sports boss and former Microsoft exec Peter Moore tipped to swing the ballot. "We thank John for his contributions to EA since he was appointed CEO in 2007, especially the passion, dedication and energy he brought to the Company every single day," Probst commented in an EA statement. "John has worked hard to lead the Company through challenging transitions in our industry, and was instrumental in driving our very significant growth in digital revenues.
"We appreciate John's leadership and the many important strategic initiatives he has driven for the Company. We have mutually agreed that this is the right time for a leadership transition."
Riccitiello joined EA as CEO in 2007, having previously worked at the company as chief operating officer from 1997 to 2004. Among the "important strategic initiatives" he's credited with are a big push into digital gaming, the on-going expansion of FIFA and Battlefield, and the nuturing (if not the inception) of key new IP in the shape of Mass Effect and Dead Space.
The out-going exec will reportedly receive two years' salary (according to Wikipedia, he's on $800,000 a year, with a personal worth of $10 million) and continued vesting of unvested stock options till 30th November 2013. "A proper retirement package," as OXM editor and card-carrying disgruntled sort Jon Hicks recently put it.
"EA is an outstanding company with creative and talented employees, and it has been an honour to serve as the company's CEO," the man himself declared in EA's statement. "I am proud of what we have accomplished together, and after six years I feel it is the right time for me pass the baton and let new leadership take the company into its next phase of innovation and growth."
Riccitiello was more candid about his reasons for leaving elsewhere. "This is a tough decision, but it all comes down to accountability," he confessed in a letter to EA's board (ta, Engadget). "The progress EA has made on transitioning to digital games and services is something I'm extremely proud of.
"However, it currently looks like we will come in at the low end of, or slightly below, the financial guidance we issued in January, and we have fallen short of the internal operating plan we set one year ago. EA's shareholders and employees expect better and I am accountable for the miss."
The market agrees, apparently - GamesIndustry reports that EA's stock has risen 2.6 per cent during after-hours trading, following the announcement.
In an internal memo to employees, Riccitiello reiterated that he was "100 per cent accountable" for the failure to meet the publisher's financial guidance, but insisted that "personally, I think we've never been in a better position as a company", singling out EA's digital and mobile strategy for particular praise.
"You have made enormous progress in improving product quality," he wrote. "You are now generating more revenue on fewer titles by making EA's games better and bigger. You've navigated a rapidly transforming industry to create a digital business that is now approximately $1.5 billion and growing fast.
"The big investments you've made in creating EA's own platform are now showing solid returns. I believe EA is alone in mastering the challenges of building a platform for our games and services - a platform that will provide a more direct relationship with our consumers.
"You are number one in the fastest growing segment, mobile, with incredible games like The Simpsons: Tapped Out, Real Racing 3, Bejeweled, SCRABBLE and Plants v. Zombies. You have worked to put EA in a position to capture industry leadership on the next generation of consoles; and I believe two of our titles - Battlefield and FIFA - will be among the top few franchises in the entire industry."
Riccitiello concluded in touching vein. "In a few weeks, I will be leaving EA physically," he said. "But I will never leave emotionally. I am so incredibly proud of all the great things you have done, and it has been my honor to lead this team these past six years. After March, I will be cheering wildly for EA from the sidelines."
Source: OXM
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Thanks to: Rheena.com
"We appreciate John's leadership and the many important strategic initiatives he has driven for the Company. We have mutually agreed that this is the right time for a leadership transition."
Riccitiello joined EA as CEO in 2007, having previously worked at the company as chief operating officer from 1997 to 2004. Among the "important strategic initiatives" he's credited with are a big push into digital gaming, the on-going expansion of FIFA and Battlefield, and the nuturing (if not the inception) of key new IP in the shape of Mass Effect and Dead Space.
The out-going exec will reportedly receive two years' salary (according to Wikipedia, he's on $800,000 a year, with a personal worth of $10 million) and continued vesting of unvested stock options till 30th November 2013. "A proper retirement package," as OXM editor and card-carrying disgruntled sort Jon Hicks recently put it.
"EA is an outstanding company with creative and talented employees, and it has been an honour to serve as the company's CEO," the man himself declared in EA's statement. "I am proud of what we have accomplished together, and after six years I feel it is the right time for me pass the baton and let new leadership take the company into its next phase of innovation and growth."
Riccitiello was more candid about his reasons for leaving elsewhere. "This is a tough decision, but it all comes down to accountability," he confessed in a letter to EA's board (ta, Engadget). "The progress EA has made on transitioning to digital games and services is something I'm extremely proud of.
"However, it currently looks like we will come in at the low end of, or slightly below, the financial guidance we issued in January, and we have fallen short of the internal operating plan we set one year ago. EA's shareholders and employees expect better and I am accountable for the miss."
The market agrees, apparently - GamesIndustry reports that EA's stock has risen 2.6 per cent during after-hours trading, following the announcement.
In an internal memo to employees, Riccitiello reiterated that he was "100 per cent accountable" for the failure to meet the publisher's financial guidance, but insisted that "personally, I think we've never been in a better position as a company", singling out EA's digital and mobile strategy for particular praise.
"You have made enormous progress in improving product quality," he wrote. "You are now generating more revenue on fewer titles by making EA's games better and bigger. You've navigated a rapidly transforming industry to create a digital business that is now approximately $1.5 billion and growing fast.
"The big investments you've made in creating EA's own platform are now showing solid returns. I believe EA is alone in mastering the challenges of building a platform for our games and services - a platform that will provide a more direct relationship with our consumers.
"You are number one in the fastest growing segment, mobile, with incredible games like The Simpsons: Tapped Out, Real Racing 3, Bejeweled, SCRABBLE and Plants v. Zombies. You have worked to put EA in a position to capture industry leadership on the next generation of consoles; and I believe two of our titles - Battlefield and FIFA - will be among the top few franchises in the entire industry."
Riccitiello concluded in touching vein. "In a few weeks, I will be leaving EA physically," he said. "But I will never leave emotionally. I am so incredibly proud of all the great things you have done, and it has been my honor to lead this team these past six years. After March, I will be cheering wildly for EA from the sidelines."
Source: OXM
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[h=3]References[/h]
- [SUP]^[/SUP] Source: OXM (www.oxm.co.uk)
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Thanks to: Rheena.com
