| SAN FRANCISCO, July 3
SAN FRANCISCO, July 3 Don Mattrick, the head of
Microsoft Corp's Xbox business who will replace Zynga
Inc's 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
Zynga stock has soared 11 percent since the company
announced on Monday that Mattrick was coming on board as chief
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 the stock's June 26 price at about $11.3 million.
This takes his salary in his first year to a total of $19.3
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.
If the company is pleased with Mattrick's performance in
2014, he is eligible for grants of new stock with a target value
of $7 million.
Credited with building Microsoft's Xbox business into a
gaming powerhouse, Mattrick officially takes over on Monday as
chief executive at Zynga, known for it's "Farmville" games.
Mattrick's new role leading a company that publishes social
media-based titles and smartphone games will be a marked
departure from his long career in the world of big-budget,
packaged console games.
Mattrick headed successful franchises such as "FIFA" during
his 15 years at video game publisher Electronic Arts Inc.
He joined Microsoft in 2007.
At Microsoft, Mattrick helped turn the Xbox business into a
profitable venture after years of operating losses, eventually
propelling the device into the top selling console in the United
Zynga shares closed nearly 5 percent higher at $3.42 on the
Nasdaq on Wednesday.