The lights are on
As Don Mattrick prepares to start turning the Zynga ship around next week, some of the reasons for his move have become clear. In an SEC filing, Zynga has disclosed just how much Mattrick will be earning as CEO.
The paperwork details a variety of components to the deal that amount to over $50 million. Mattrick will receive $1 million per year in base compensation. However, his signing bonus amounts to $5 million and, because of foregone stock, Zynga has extended a "make-whole grant" that totals $25 million in stock, vesting over three years. The first and second year represent approximately $11.3 million each of that.
In addition to the make-whole grant, Mattrick will also be receiving $15 million in stock. In 2014, he'll be eligible for a performance bonus of $2-4 million cash and $7 million in stock.
It's also reported that Mattrick was in line for the CEO position at EA, according to comments he made to GamesIndustry International. This leaves the publishing giant at square one in its search for John Riccitiello's replacement. As for Microsoft, rumors still haven't been resolved about Windows chief Julie Larson-Green taking over Xbox One development as head of a new hardware division.
[Source: SEC via Bloomberg]
Our TakeMoney talks. As we sat back and scratched our heads wondering what on Earth could have motivated Don Mattrick to jump on the sinking Zynga ship, he was starting to cash in on a huge payday.
Zynga might be too far gone to save, requiring an entire corporate culture overhaul that would take more time than the ailing company has. Investors have loved the appointment, but whether they'll feel the same way in twelve months is all on Mattrick's shoulders now.