Zynga details new CEO Don Mattrick’s compensation in SEC filing
Zynga has filed its required 8-K documents in association with the arrival of new CEO Don Mattrick. The document details the compensation Mattrick will receive in terms of salary, bonuses, and stocks.
Mattrick will receive a one-time sign-on bonus of $5 million in cash, and is guaranteed a base salary of $1 million annually. Beginning next year, Mattrick will be eligible to receive an annual bonus of 200% to 400% his base salary, or $2-4 million.
Mattrick’s make-whole grant contains over 8.9 million units of Zynga stock, valued at $25 million, based on Zynga’s stock price on June 26, 2013. The grant will vest over a period of three years at a rate of 45.32% for Mattrick’s first two years and 9.36% for his third year with the company.
Finally, Mattrick is also eligible for performance-based grants valued at $7 million.
Former Zynga CEO Mark Pincus opted for a salary of $1 for 2013, without any additional cash bonuses, while the salaries of many Zynga executives doubled.
Mattrick’s numbers are fairly consistent in the online and gaming spaces. For instance, former Electronic Arts CEO John Riccitiello received an $800,000 base salary in 2011, while current Yahoo CEO Marissa Mayer will receive a $1 million annual base salary and up to $4 million in annual cash bonuses.
Zynga has had a troubling 12 months, as executives including former COO John Schappert and Chief Creative Officer Mike Verdu left the company last summer. More recently, the social / mobile game developer has shuttered multiple underperforming titles, including Treasure Isle, CityVille 2, and Empires & Allies.
Zynga’s stock currently sits at $3.42, an increase of around $0.60 since Mattrick was first rumored to be joining the company on July 1.
[H/T All Things D]