Mattrick receives a fortune joining Zynga, Inc. (NASDAQ:ZNGA)


Dallas, Texas 07/05/2013 (Financialstrend) – Zynga, Inc. (NASDAQ:ZNGA) closed in the previous trading session at $3.42 after going up by 4.59% (or $0.15). The intra-day range of the stock is $3.32-$3.48. The market capitalization of the company is $2.72 billion.

In a regulatory filing on Wednesday, the company said that the head of Xbox business of Microsoft, Don Mattrick, who will now replace the founder and the current Chief Executive Officer of Zynga Company, Mark Pincus, as CEO next week, will get a hefty (mainly stock-based) compensation package of about $50 millionin the coming years.

The company said that Mr.Mattrick will receive a base salary of $1 million in his first year, in addition to a 2013 bonus of $2 million and a sign-on cash bonus of $5 million equivalent to the average bonus of other executive officers of Zynga.

Mr.Mattrick lost some shares by leaving Microsoft. To compensate for that, he will receive a make-whole grant of $25 million; he may also receive about9 million restricted stock units, with an exercise right for the next three years. The currentvalues of these shares are over $30.5 million.

As the company announced on Monday the appointment of Don Mattrick as the new CEO, Zynga stock soared 11%.

His total salary in his first year will sum up to $19.3 million, obtaining also an inducement grant of 1,785,714 restricted stock units from Zynga,with a target value of $5 million. He also has an option to buy 7,357,143 shares with a target price of $10 million with exercise right up to the end of his 3rd, 4th and 5th terms of employment. As a chief executive, he is expected to make $14.3 million in his 2nd term and about $8.4 million in his 3rd term.