Zynga Inc. has entered into retention agreements with two of its
executives, after the gaming company's chief executive and
operating chief resigned in recent weeks.
The retention agreements are for Devang Shah, the company's
general counsel and vice president, and David Lee, who holds the
finance and accounting chief roles.
The agreements stipulate that Mr. Shah and Mr. Lee will receive
six months of their base salary and target bonus, as well as an
additional six months" vesting of equity awards, if they are
terminated without cause or choose to leave for "good reason."
Zynga's shares peaked in early 2012 following the release of
popular Web-based games tied to Facebook such as "Farmville," but
the company struggled to produce more blockbusters despite shifting
focus in recent years to mobile games that consumers now
prefer.
Earlier this month, Chief Operating Officer Clive Downie
resigned, just weeks after the company announced that Mark Pincus
returned as chief executive to replace Don Mattrick, who resigned
after less than two years in the job.
Shares, inactive premarket, have fallen 11.6% this month.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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