EA Increases CEO Salary While Employees Earn Less

Andrew Wilson, CEO of Electronic Arts (EA), saw his total compensation increase by $5 million this year, reaching $25.7 million. This increase contrasts starkly with the average compensation of the company's employees, which hit its lowest value since 2022. The information, which raises concerns about wage equity in the industry, indicates a growing disparity between leadership and the workforce.

Wilson's compensation is composed of base salary, bonuses, and stocks, a common model in large corporations. However, the CEO's increase in a period where employees are experiencing a salary reduction is a point of criticism that resonates amidst discussions about layoffs and the precarization of work in the gaming industry.

In 2024, the average compensation of an EA employee was $127,766. This value represents a decrease compared to the $143,763 recorded in 2023 and $140,089 in 2022. The difference between Wilson's salary and the average of the employees is 201 to 1, which means that the CEO earns 201 times more than the average of his collaborators.

EA carried out mass layoffs in 2024, cutting about 5% of its workforce, affecting approximately 670 employees. The company justified the cuts as a measure to "focus on our greatest differentiators" and "invest in our greatest strengths". This narrative of resource optimization while executive compensation increases raises questions about the company's priorities.

Market analysts note that EA has been showing positive financial results, driven by franchises like EA Sports FC and Apex Legends. In the fiscal year of 2024, EA reported a net revenue of $7.56 billion, an increase from the $7.43 billion of the previous year. Net profit also grew to $1.26 billion, compared to $802 million in 2023.

The situation of EA is not an isolated case in the technology and gaming industry. In other large companies, such as Activision Blizzard, there have also been criticisms of high executive compensation, like Bobby Kotick, especially during periods of restructuring and layoffs. Wage disparity is a recurring theme in discussions about corporate responsibility and social justice.

Electronic Arts faces the challenge of balancing the interests of its shareholders with the well-being of its employees, who are the foundation for the creation of products that generate revenue. The public perception of such disparities can affect the company's image, talent retention, and internal morale, critical aspects for long-term sustainability in a competitive industry like gaming.