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.