Zynga hopes to retain top executives with bigger bonuses tied to performance, Mark Pincus’ new annual salary is $1
Zynga today filed a form 8-K with the Securities and Exchange Commission which reveals that in 2013 the company’s top executives will be compensated with larger bonuses, but that these will be more closely tied to their performance.
Zynga has been hemorrhaging its top executives since late 2012. Most recently, the company lost its New York office general manager Dan Porter, the former CEO and founder of OMGPOP which Zynga acquired for $180 million just over a year ago.The new compensation plan, it seems, is aimed at retaining the current top executives with Zynga for the long haul.
As it’s expressed in the form 8-K: “The Company’s 2013 executive compensation program is designed to focus on two primary objectives: first, retaining and motivating our talented, entrepreneurial executive leadership team; and second, aligning our executive pay structure with company performance-based incentives. We believe that by focusing on both retention and performance, the compensation packages align with our strategy to build value for our stockholders.”
The bonuses include both cash compensation and equity in the company, which are contingent on performance related to growing game franchises for web and mobile, expanding Zynga’s network and “achieving certain adjusted EBITDA levels,” (i.e. earnings).
It should be noted that the new base salary for most of these executives has almost doubled. For example Zynga President, Games Steven Chiang’s base pay for 2012 was $300,000 with quarterly bonuses of $100,000. His new base pay is $500,000, with the potential to earn as much as $1.4 million for the year in performance-based bonuses.
Founder and CEO Marc Pincus, meanwhile, took the road of Silicon Valley CEOs like Facebook’s Mark Zuckerberg and Google’s Larry Page, reducing his annual salary to $1. He will also be exempt from the cash bonus program and equity bonus program that the other executives will be a part for 2013.