New Zynga CEO Mattrick's Package Is Worth About $50M In Stock, Options and Salary

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New Zynga CEO Don Mattrick, who just left Microsoft to take care of the troubling social games business, is getting incentivized greatly with stock for his new job.

He starts with a sign-on bonus offer of $5 million, a base salary of $1 million, then gets a pro-rated minimum annual incentive that’s either worth 200 percent of his salary or the average reward portion for the remainder of the business’s execs – whichever is greater.

The initially huge stock component of the plan is worth about $25 million at the moment, and vests over 3 years. It’s a ‘make entire’ grant that makes up for the stock Mattrick is quiting in leaving his task at Microsoft.

Then on top of that there’s an ‘inducement grant’ that vests over five years that’s presently worth a little over $6 million at about 1.8 million limited stock spaces or RSUs.

It also provides Mattrick the option to buy even more than 7 million shares of stock equal to the closing price on the grant date, with the target for these choices being worth about $10 million. If Mattrick is successful in turning the company around, that grant could be worth much more. He’s also qualified for equity grants every year, with the one for 2014 being worth about $7 million in restricted stock spaces.

If Mattrick leaves, he gets a severance benefit worth two times his annual wage of $1 million plus 2 times his bonus offer. He also gets increased vesting of all his preliminary ‘make whole’ $25 million stock grant and any other grants that’d have vested in the exact same year.

If he gets ended on the occasion that Zynga has a ‘modification in control’ or gets obtained, both the big stock grants get fully increased with the money severance being paid in a lump amount.

Zynga likewise covers his legal fees with the salary provide to $60,000. If any payments to him trigger a ‘golden parachute’ tax, the repayments and perks could get decreased to the point where he’d be much better off general on an after-tax basis.

It’s a package that’s made to incentivize him to obtain that stock rate up, which has been floating around $2 to $3 for the previous six months. Zynga debuted at about $10 throughout its IPO however its stock sank by almost 75 percent in the year afterward as investors lost self-confidence that the company could keep its hang on the Facebook platform and successfully shift to Android and iOS. Undoubtedly, Zynga and King are neck-and-neck in with regards to regular monthly active individuals on the Facebook platform, according to AppData.

In the exact same SEC declaring, Zynga also reveals that Owen Van Natta, who was at one point Zynga’s Executive Vice Head of state of Company, is also stepping off the board.