Don Mattrick could make out like a bandit thanks to his new CEO role at social gaming firm Zynga.
According to the company’s SEC filing Mr. Mattrick has received a $5 million sign-on bonus, $1 million in base salary, and a pro-rated minimum annual bonus worth 200 percent of his salary or the average bonus percentage for the rest of Zynga’s executives.
Mattrick has also been handed a stock package worth $25 million. The stock package will vest in three years. The stock package is part of a “make whole” deal which provides Mattrick with the stock he lost when he left his job at Microsoft.
As Zynga’s new CEO Mattrick is also entitled to an “inducement grant” that vests over five years and is worth just over $6 million thanks to 1.8 million restricted stock units.
If he chooses, the company’s new CEO can also exercise an option to purchase 7 million additional shares of stock equal to the closing price on the grant date. Those options are expected to be worth around $10 million. If Don Mattrick turns Zynga around the stock option could skyrocket in value.
Mattrick is also eligible to collect on equity grants every year with 2014 being worth about $7 million in restricted stock units.
If Don Mattrick exits Zynga he will be given a severance benefit worth twice his annual salary of $1 million plus two times his bonus. Mattrick’s exit would also accelerate vesting for all of his initial “make whole” $25 million stock grant and any other grants that would have vested in the same year.
If Mattrick is fired he would receive his stock grants and cash severance package in one lump sum.
Zynga stock prices have hovered around $2 to $3 over the past six months and Don Mattrick’s salary package ensures that much of his earned income will be based off his ability to turn the company around.
With experience working on Microsoft, including time spent with the Xbox 360 and time spent at Electronic Arts, Mattrick could be exactly what the relatively new gaming company needs.
Do you think Don Mattrick will do a better job running Zynga than former CEO and founder Mark Pincus?
0 Comments