Friday, November 11, 2011

Zynga's Stock "Scandal"

ZYNGA  and CityVille

In the journal called "The Wall Street Journal," Zynga pasted the front-page as his story. A social gaming company called the farm-ville are giving up their previous-granted stock. In this article Zynga states that he does not want to harm the WSJ, but just clarify the misunderstood  conclusion from the wall street journal. So the main problem Zynga had to deal with was the stock option grants given to early Zynga employees. There were no promise as to what the shares may ultimately be worth, but start-up employees were optimistic bunch that often left higher-salaried jobs with more established companies. Once an employee's options vest, he or she is generally entitled to keep them whether or not they remain employees. However, in Zynga they like to do it in a different way. rather than firing under performing employees and handing unvested options to the replacement Zynga likes to find other positions that the employees would be pleased with and remove their position. At Zynga it seems that Pincus intents on retaining talent, even if that talent either didn't live up to initial expectations or didn't adequately match up to the changing needs of a fast-growing company. Zynga is a company that organizes by its' product groups, and such products have easily measured metrics. However, as a final point, Zynga could be accepted as a moral business. This kind of buisiness depands on the technology , or the population of the  shifting supply in the curve.

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