Zynga Threatened Employees With Firing To Reclaim Stock
Zynga Threatened Employees With Firing To Reclaim Stock
Posted 11/10/2011 at 3:26pm
| by Ryan Whitwam
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A new report details some seriously shady practices at FarmVille maker Zynga last year. Apparently the firm was using large batches of stock to entice the hottest talent in silicon valley to join up. This is fairly common in tech start-ups. However, in the process for planning it’s impending IPO, Zynga CEO Mark Pincus became worried they had given out too much stock. His solution was simple: force employees to give it back.
Along with his executive team, Pincus began demanding that many employees return their non-vested stock to the company. This understandably upset workers, who had foregone higher pay in exchange for stock that could potentially make them super-wealthy when the company goes public. The threats were apparently not idle, either. Employees that did not comply would be terminated.
According to the report, only two Zynga workers stood up to Pincus. One left the company, and the other still works there. Both retained lawyers and worked out a settlement allowing them to return only a part of non-vested shares. There might be a business justification for this behavior, but we can’t help but find it contemptible.
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nesrinamb
November 15, 2011 at 3:03pm
I think every one should have stood up to the company and remind Mr. Pincus that the shareholders are the ones that make the demands to the board and the CEO, not the other way around.
Athlonite
November 10, 2011 at 7:03pm
if I were one of those employees I'd say sure thing I'll sell them to you but if you think your getting them for free then you'll have to Sue me oh and if you sack me then it'll be back to court for you
whathuhitwasntme
November 10, 2011 at 6:46pm
rite animal but it should either be defecating or urinating on the stock holders from the sound of this report
Biceps
November 10, 2011 at 4:45pm
There was a great article in the SF Weekly about Zyna's exceptionally questionable business practices as well as the low moral character of Pinkus. Goes to show that the best way to get rich is to ride on the shoulders of others, then screw your friends. All just my opinion, of course.
Eoraptor
November 10, 2011 at 3:52pm
What's that Republican's? deregulation is GOOD for workers? aleechsayshuh?
Sorry, i could not resist. This HAS to be illegal.
mseyf
November 10, 2011 at 3:41pm
Would seem Zynga has chosen the perfect animal to place on their logo....
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