This month, two of Zynga’s most valued executive staff members left the company. To help prevent any further exits, the social gaming firm has offered retention agreements to several current executives. The two staff members that have been offered retention agreements are vice-president Devang Shah and accounting chief David Lee.
Their agreements state that they will be provided with six months of their base salary and target bonus, they will also be given an additional six months’ vesting of equity awards. This compensation will only be provided if their contracts are terminated without cause or they choose to leave the company for a “good reason”.
While the agreements may seem to offer the staff members great compensation for leaving, they actually provide the executives with a reason to stay. The retention agreements show Mr Shah and Mr Lee that they are valued members of the team, and encourages them to perform well for the company.
The news of the retention agreements comes just weeks after CEO Don Mattrick and Chief Operating Officer Clive Downie resigned. Neither executive provided a solid reason for leaving the company – but we can assume that it has something to do with Zynga’s poor financial performance as of late.
In fact, Mr Downie has even lined up a marketing position with Unity Technologies, a gaming platform that has seen a recent surge in popularity. It is hoped that the retention agreements will serve their intended purpose. With Zynga Founder Mark Pincus back in the role of CEO, the company is under pressure to recover from its recent financial turmoil.
The company will need all the help it can get from its current staff, so it is important that existing executives stick around to help ensure a successful future for the company.
About the Author
