Zynga is using stock options -- a retention tactic commonly used in startups before they go public -- to keep employees at the company, according to a new report.
Zynga CEO Mark Pincus has decided to issue stock options to all of the company's employees, The Wall Street Journal reported yesterday, citing sources. The move is a not-so-subtle attempt on Pincus' part to boost morale and keep employees, many of whom already hold stock in the game maker, from leaving and selling off their shares when able.
Since Zynga went public at $10 per share, the company's shares have dropped to just $2.94. Many Zynga employees owned the company's stock prior to going public, and because of an SEC-mandated lockout period from selling shares, have watched their investment in the company decline. By issuing stock options, Pincus, who was able to cash out $300 million from his company, is attempting to offer employees a new form of incentive.
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