Monday, November 14, 2011

Zynga: Idiots of the Day

What you want to bet the "top executives" have made sure they haven't lost a dime...

Attracting top employees can be difficult for cash-strapped startups. So, in many cases, they give out company stock to supplement salaries that employees might feel is below-market.

Zynga followed that strategy. But now the CityVille and FarmVille maker apparently wishes it hadn't, according to a new report.

Citing industry sources, The Wall Street Journal reported today that Zynga CEO Mark Pincus, along with his top executives, decided last year as they were preparing for an initial public offering (IPO) that they had given out too much stock to employees. But rather than accept that reality, the executives reportedly tried a different tactic: demand employees give back not-yet-vested stock or face termination.

Read more here.

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