Zynga's new CEO Don Mattrick to get pay package worth some $50 million
- Maharashtra: Building collapses in Thane district, several feared trapped
- Nation pays tribute to Abdul Kalam, funeral in Rameswaram on July 30
- SC bench differs on Yakub's execution, refers plea to larger bench
- 'Your indebted student': Kalam's advisor pays tribute to former President on Facebook
- Gurdaspur attack: GPS shows terror team, got drug cartel help too
Don Mattrick, the head of Microsoft Corp's Xbox business who will replace Zynga Inc founder Mark Pincus as chief executive next week, will get a hefty, largely stock-based compensation package of about $50 million in coming years, the company said in a regulatory filing on Wednesday.
In his first year, Mattrick will receive a base salary of $1 million, a sign-on cash bonus of $5 million and a 2013 bonus of $2 million, or the average bonus of Zynga's other executives, the company said.
To compensate for shares he lost in leaving Microsoft, Mattrick will receive a make-whole grant of $25 million, or about 9 million restricted stock units that will vest over the next three years. These shares are currently valued at over $30.5 million.
Zynga stock has soared 11 percent since the company announced on Monday that Mattrick was coming on board as chief executive.
At the end of his first year, Mattrick will get 45.32 percent of his 9 million restricted stock units, valued by the company at about $11.3 million based on the June 26 price. This takes his salary in his first year to a total of $19.3 million.
Zynga is also giving Mattrick an inducement grant of 1,785,714 restricted stock units with a target value of $5 million and an option to buy 7,357,143 shares with a target value of $10 million that will vest at the end of his third, fourth and fifth term of employment.
Mattrick is expected to make about $14.3 million in his second term and about $8.4 million in his third term as chief executive.
If the company is pleased with Mattrick's performance, he is eligible for grants of new stock with a target value of $7 million in 2014. In following years, the company's board can award him new stock grants, but will try to keep the target value at $7 million.