Zynga filed its 8-K regulatory filing, among other things documenting the compensation package for former Microsoft executive and now Zynga CEO Don Mattrick. Over several years Mattrick can potentially make over $50 million at Zynga depending on how the stock does. In his first year alone Mattrick is set to make $19.3 million in combined cash and stock. This includes a $5 million signing bonus, a $1 million annual salary, and guaranteed cash bonus of $2 million. He will also receive $11.3 million in Zynga stock; compensation for vesting shares he gave up in leaving Microsoft.
Mattrick is also getting an “inducement” grant of 1,785,714 restricted stock units, valued at $5 million, as well as an option to purchase 7,357,143 shares now worth $10 million, which will also vest over several years. Beginning in 2014, Mattrick will be eligible for a 200 percent to 400 percent yearly cash bonus of his annual base salary, or $2 million to $4 million. According to the filing, for example, Mattrick’s make-whole grant is $25 million in total — 8,928,571 Class A RSUs of Zynga — that will vest over his first three years at the company and are valued at a price of $2.80, based on Zynga’s stock price on June 26. That means 45.32 percent will vest on the one-year anniversary of the start of his employment — this coming Monday — and 45.32 percent on the day prior to the 2015 annual shareholder meeting. The remaining 9.36 percent, or $2.3 million, will vest on the third anniversary of his start of employment. Along with the make-whole and inducement grants, Mattrick is also eligible for other grants — similar to those given to other execs at Zynga — which are performance-based and are valued at $7 million. As is standard, Mattrick will get a payment of $60,000 related to legal fee costs associated with his employment agreement with Zynga, as well as severance of twice his annual salary, two times his target bonus, a pro-rated bonus for the fiscal year of the termination and an accelerated vesting of all his grants.
Mattrick is also receiving a seat on Zynga’s board.
I’ve seen a lot of bashing of Mattrick lately, while the Xbox One was a PR nightmare, I think he did a great job building Xbox to what it is today. I urge you to check out this profile by Fast Company: http://www.fastcompany.com/3013767/don-mattrick Lot of interesting tidbits in there among them:
- Mattrick is married to a smoking hot Canadian Telecom heiress
- He earned $21 million from EA stock options alone.
- His home, the largest in British Columbia, is worth an estimated $28 million, and is over $25,000 square feet
- His expertise was pretty much being a ‘game guy’
Former distinguished Microsoft engineer Hal Berenson had some good thoughts regarding Mattrick also: http://hal2020.com/2013/06/03/microsoft-reorganization-rumors/ and http://hal2020.com/2013/07/01/don-mattrick-departs-microsoft/