CEO to Staff: Give Back Stock or be Fired
So what would you do if your boss came to you and said all the stock they gave you as an employee had to be returned or you would be fired? Well that is exactly what the employees of Zynga are facing after CEO Mark Pincus and his band of executives told them just that.
Zynga is the company that made the popular social webiste games “Farmville” and “Citiville”. executives are in the process of offering an IPO but have determined that too much stock was given to their staff. This was unacceptable to the board so they hatched a plan to demand stock back from those employees who’s production they felt did not match the stock given to them.
According to Cnet “Zynga executives were especially concerned with not creating a “Google chef” scenario. That reference relates to Google’s 2004 IPO when one of the company’s chefs, who was hired in the firm’s early days, walked away with $20 million worth of stock after the shares went public.”
As you can image the company was met with anger by the staff targeted and some have retained attorneies in the matter.