Zynga released a filing detailing the pay package for new CEO Don Mattrick.
In total, he’s getting over $50 million in compensation.
He’s getting $8 million in cash in year one, and the rest is going to be largely in stock.
Here’s there details, broken down:
- Base salary: $1 million.
- 2013 bonus: Whichever is bigger: Either $2 million, or the average 2013 bonus percentage of Zynga’s other executives. (For instance, if Zynga’s execs average 300% of their salary for their bonus, he would get $3 million.)
- 2014 bonus: Between $2 million and $4 million.
- Bonuses after 2014 will be determined by the board.
- Signing bonus: $5 million.
- Make-whole stock grant: He’s getting 8,928,571 shares, vesting over three years. He gets 45.3% of the shares after year one, 45.32% after year two, and the rest after the start of year three. Those are currently valued at ~$30.5 million. If does a good job, they’re worth more. If he does a bad job…
- Inducement grant: He gets 1,785,714 shares of restricted shares. He also gets an option to buy 7,357,143 shares at the grant price. The options vest as follows: 60% in year three, 20% in year four, 20% in year five.
- More stock: In 2014, he’ll be eligible for new stock grants. The target value for those grants is $7 million. In years that follow, the board can set new stock grants, but it’s generally going to target $7 million.
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