Loses a ton of money, so execs are getting pay raises: awesome!
Zynga just reported in a filing to the Securities and Exchange Commission that they will be giving all of their top executives a hefty pay raise. In fact, they will make nearly double their previous base salary. In addition they could potentially earn up to another 200% of their base salary, provided that the company meets certain performance levels. Not bad considering Zynga’s stock price has dropped over 70% in the last year.
The move comes in an effort for Zynga to retain its top level executives after a recent exodus of a number of high ranking personnel from the company. The most notable of which was Dan Porter, the general manager of the New York office and founder of OMGPOP. Meanwhile, Zynga developers are losing their jobs due to underperforming games and studio closures. So there's that.
This comes on the heels of Zynga’s announcement that it will go into real money gambling market.
Now, this may be the gamer in me speaking, but I wonder how much all of this will really help Zynga in the long run. Their games have never really been too innovative (although I was at one time an avid player of both Words with Friends and Scramble with Friends) and I’ve always been skeptical of microtransactions. However, Zynga employs a total of 3,000 people full time and part time and if this means that this will keep those people in a job a little bit longer, then more power to them, I guess.
Thread Recap (last 10 posts from newest to oldest)
Apr 06, 13 at 8:01pm
Pfft. And people tried to convince me that mobile would kill the console. Look at that.
Apr 06, 13 at 3:07pm
im actually happy. let them waste their money on their 'do this, do that' people. company continues to go to the shitters, and eventually, they will go bust. was a shitty company known for being an asshole (no puns intended) to smaller developers, anyway.
Apr 06, 13 at 2:52pm
The main issue comes down to whether or not they are replacing the talent they are losing and, from the sounds of things, they aren't. A lot of the "big names" in Zynga who have left or who have considered leaving were not replaced by equally capable people, nor were their equally capable people waiting in the wings. I have a feeling they think their last hope is retaining these guys in the company as long as possible, if only because they are known variables, and have managed success in the past.
It's been the result of bad overall changes in what their plan is over any individual's action, mind. The whole gambling thing tends to make your share price drop, for example, and while it can be profitable, it's a risk a lot of investors are unwilling to pay for. That doesn't come down to individuals, but they may need those individuals to succeed.
Just playing devil's advocate.
Apr 05, 13 at 9:29pm
Yeah, I can understand why they did it I mean, it's a business decision. Great for them if they hit their performance levels, but what if they don't? I wonder if retaining the same executives is really the way to go. I mean, as far as I can tell they've been losing money ever since they went public they've been losing money and if it wouldn't be a smarter idea to shake up the management.
Yeah, Pincus is foregoing his salary, but he also holds 59% of the stock in Zynga. I mean, his main income is going to come from the stocks anyways. Obviously, this might not mean anything considering Zynga's stock performance right now, but I don't feel like it's as out of the ordinary. I mean, if you're the owner of your own restaurant do you pay yourself a salary as well?
Apr 05, 13 at 6:12pm
Higher pay regardless of performance? or at the expense of employees?
Worse than the ideologies of communist leaders!!
Apr 05, 13 at 5:03pm
In your whole rant, you forgot to mention that Pincus is foregoing his salary and bonuses for the year. I find it pretty funny that you purposely left that part out, he's the CEO yet not a single word was mentioned about that - so much for unbiased journalism, just once I'd like to read all the facts rather than just the ones that suit your argument only. Not to mention the fact that the performance bonus will only be paid out if the company and stock is doing well - so clearly Zynga wouldn't be losing money if the execs get their bonuses.
Apr 05, 13 at 2:09pm
Nothing different from every other business TBH. Banks to energy companies. I've no issue with a business giving it's high ranking execs a bonus if the company is performing very well but when things are going bad and their main interest is making sure they get a high redundancy package over the future of the company or that of their employees then they shouldn't be allowed on the board or in positions of power in another company again.
Then again Zynga steal intellectual property so it's only natural the bosses steal from that.
Apr 05, 13 at 1:57pm
Powered by neoforums v2.3.7 (Bolieve) Copyright Neo Era Media, Inc. 1999-2015