Zynga's new CEO paid mostly in stock

Don Mattrick has a clear incentive to raise Zynga's stock

Yesterday, we received news that Microsoft president of Interactive Entertainment Don Mattrick had jumped ship to become the new CEO at Zynga. Today, a report from the Wall Street Journal details exactly how much Zynga is paying Mattrick to steer the ship.

Anonymous sources told the WSJ that Mattrick's compensation will be 95 percent Zynga stock, with further details coming in a regulatory filing.

Zynga's stock was up 11 percent this morning based on the news of Mattrick's appointment, but it has since dropped down to around 6 percent. It is currently sitting at $3.26 per share, a far cry from the high of $14.69 per share.

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Latest comments (8)

which often leaves the CEOs self-interest in direct contrast to the best interest of the company and its long term health and goals.
The CEO is now worried more about stock price, wall street reaction and short term price spikes and goals ( which will allow him to cash out a huge payday) then he will be about long term investment in capital and people.

It is this type of management compensation system which has really screwed up the corporate world. Management suddenly becomes all about the short term and what wall street wants, not what is best for the company, its employees, and its long term health and strategy.

Edited 3 times. Last edit by Todd Weidner on 2nd July 2013 7:05pm

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Andrew Goodchild Studying development, Train2Game3 years ago
If he was paid all in cash, his job would still be dependant on the board, representing shareholders, who only care about return on their shares, so not sure there is much difference there.
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not exactly, shareholders, especially large ones may have a real different time frame than a manager. Large shareholder such as pension funds etc may well be looking beyond the next quarter as they are in it for the long haul. Management not so much, these guys/gals pop around and jump ship frequently. ( in many cases get in, manipulate, extract, cash out, get out, and move to the next )

But I will agree with you, with wallstreet becoming little more than a rigged-ponzi trading casino, rather than a long term investment vehicle, the problems in the corporate world just keep mounting. The corporate wall street world has become all about the manipulation and extraction of wealth, Long term creation and building of wealth is for suckers, it seems.

Edited 2 times. Last edit by Todd Weidner on 2nd July 2013 8:10pm

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"stock, the payment of a man in a hurry!"
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Bruce Everiss Marketing Consultant 3 years ago
This shows startling faith in his own ability and in the future success of Zynga. Both probably not misfounded.
The potential upside for him is effectively infinite. I think he will make a huge amount of money out of this.
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Nicholas Pantazis Senior Editor, VGChartz Ltd3 years ago
@ Bruce Or it shows how desperate he was for a new job after Microsoft gave him the axe.
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Paul Shirley Programmers 3 years ago
@Bruce or maybe it just shows Zynga immunising itself from the 'Elop effect'.
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Martyn Brown Managing Director, Insight For Hire3 years ago
If the US online gambling laws are relaxed as is mooted. Zynga are set to make a bloody killing.

Gambling. Porn. Drugs. Real money machines.

Games are not in that list. Films neither.

Unfortunately I'm not working on shit in that list either ;-)
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