Home Business News Top management at electronic arts got fat bonuses and push for AI

Top management at electronic arts got fat bonuses and push for AI

by Thea Coates Finance Reporter
20th Jun 24 10:20 am

A few weeks ago, Electronic Arts released its earnings report, which was all rainbows and butterflies.

Gillian Mercylin, an author at thesolitaire, said, “There’s always a thorn that follows a rose, and with Electronic Arts, the employees felt the prick. The stock was up by 7.6% over May 2024 with a good Return on Equity average of 16%. While the shareholders rejoiced, the employees would probably head to Glassdoor to trash the workspace.”

The earnings strategy of electronic arts

There are several moving factors that make up the success of a company financially. While EA has proved to outrun the race to come out as a top gaming developer, there are several bitter decisions along the way. The top management at Electronic Arts received big bonuses over the last year, while the company let go hundreds of staff members.

EA follows a strategy where they believe that paying dividends to shareholders and providing hefty compensation to the management keeps the company’s financials looking good. The downside is a heap of disgruntled employees in the wake of their success.

In May 2024, Andrew Wilson, the CEO of Electronic Arts, said, “We’re in the era of generative AI, which is the most exciting yet by a fairly wide margin and something that we’re embracing deeply. We think about it in three core vectors: efficiency, expansion, and transformation.”

He also declared that EA is watching the monetary benefits of generative AI and said, “Where there is real personalized content, bespoke to me and bespoke to my friends, monetization is 10 to 20% greater,”

If you are wondering what AI can do for shareholders, it means just one thing – A lot of money. However, the catch? More job cuts are coming in the future. With computers going all the hard yards without human intervention, there is little need to keep employing people.

The stock market watch for EA

Electronic Arts has been smashing it at the stock markets. Their top position in the market firmly establishes their might. It’s been strong trading days every day since news about the venture into AI hit the stands. On Tuesday, the company touched a 0.44% higher value at the $138.13 mark. This stock climb is for the fourth consecutive day.

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