Thursday, November 17, 2011

Zynga Takes Back Stock Options

Zynga, a company famous for its many online games such as FarmVille and Words With Friends has issued an ultimatum to some of its employees: give up some of your unvested stock options or be fired. Being fired, they would lose all of their unvested stock options. When choosing to work at a startup, stock options are typically part of the benefits package and may be given in lieu of a market salary. Zynga said that they are trying to balance expected payout with performance and reclaim some options to give out to attract new talent. What Zynga is doing is wrong. Personally, I would be leery of joining a company with stock options that had just taken some back from employees.

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