Zynga shelling out $50 million for Don Mattrick
Don Mattrick may have departed Microsoft failing to endear many to the upcoming Xbox One
, but free-to-play giant Zynga is still paying out plenty to retain him as the company's new CEO
. Between cash salary, signing bonus and equity, Mattrick stands to gain $50 million U.S. (€38M; £32.7M) from the move.
Here is how it breaks down, via Zynga's regulatory 8-K filing [docstoc
- $5M signing bonus
- $1M annual salary
- $2M cash bonus
- $11.3M in Zynga stock (in a make-whole grant valued at $25M total)
- $5m "inducement" grant of 1,785,714 restricted stock units, vested over several years
- $10M option to purchase 7,357,143 shares, also vested
- A 200 to 400 percent yearly cash bonus ($2M to $4M) over base salary, starting in 2014
Mattrick will also be eligible for additional, performance-based inducement grants similar to those paid to other Zynga executives, valued at $7M. He will also receive a (standard) $60,000 payment for legal fee costs, a severance package worth $2M plus twice his target bonus, a further prorated bonus, and accelerated vesting for all his grants.
With much of the package based on equity, a lot of its value will depend on Mattrick's ability to restore Zynga to, or even exceed, its former glory. Stocks rose following the initial announcement, but at least some analysts remain skeptical
about Mattrick's long-term effect on the company, even scaling back their revenue projections for the 2013 fiscal year.
Nevertheless, if you had any fear that Mattrick will not be sleeping comfortably in his new digs, worry not. Zynga appears quite confident that their new CEO will ensure no cow goes unclicked.