Thu, Jul 04, 2013 | 11:33 BST
Zynga CEO package worth $19.3 million this year, $50 million over three years
Over the next few years, new Zynga CEO Don Mattrick will receive compensation worth about $50 million.
The new executive will receive a base salary of $1 million for his first year, a cash bonus of $5 million for signing on the dotted line, and a $2 million bonus for 2013, which is the average bonus received by Zynga’s other executives.
Mattrick’s remaining compensation will be mostly stock-based, according to a Reuters report on a Zynga SEC filing.
To start with, Mattrick will receive a $25 million share grant – about 9 million units to vest over three years.
The shares are worth $30.5 million now, but at the end of his first year in office, Matrrick will receive 45.32% of that amount, which should net him a further $11.3 million – bringing his first year cash total to $19.3 million.
On top of that, Zynga will grant Mattrick a further 1.78 million stock units worth $5 million, as well as the option to buy a further 7.3 million worth $10 million, to vest at the end of his third, fourth and fifth employment terms – an inducement to stick around.
And finally, if Mattrick performs well, Zynga may grant him further stock worth $7 million.
Zynga stock rose sharply when Mattrick’s appointment was announced.