New Zynga chief Mattrick’s compensation could top $50 million
Don Mattrick, who earlier this week was appointed to replace Zynga’s founder Mark Pincus as CEO, has a tough task in front of him: turning around the struggling social video game maker.
But he will certainly be well-paid for his efforts. According to documents filed with regulators Wednesday, Mattrick’s total cash and stock pay package could top $50 million over several years.
Shares of the San Francisco company rose 4.6% Wednesday to $3.42 at the close of trading in New York.
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Mattrick, the Microsoft Corp. Xbox executive who will take the reins at Zynga on Monday, is receiving a sign-on bonus of $5 million. For 2013, he’ll get an annual salary of $1 million plus a $2-million bonus.
In 2014, he’s eligible for a bonus of as much as $4 million and a stock grant of up to $7 million, depending on performance.
He’s also getting about $25 million in Zynga stock vesting over the next three years.
He’ll receive an additional restricted stock-based inducement package worth about $15 million, vesting over five years.
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The total, mostly stock-based package puts him over $50 million in compensation over the next several years, and could increase or decrease depending on the performance of the Zynga’s stock.
Zynga announced the leadership change Monday. The shares have surged about 23% so far this week.
Best known for games such as “FarmVille” and “Words With Friends,” Zynga has struggled to repeat the success of its early games as its users play more on mobile devices rather than on Facebook.
It’s also facing stiff competition for companies such as “Candy Crush” maker King.
Mattrick has been president of Microsoft’s interactive entertainment business, where he oversaw the growth of the Xbox 360 console.
Pincus will remain Zynga’s chairman and chief product officer, the company said Monday.
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