Zynga has had a brutal year, and CEO Mark Pincus is being held accountable. A company filing with the Securities and Exchange Commission revealed that as of April 1, Pincus took a cut to his base salary, reducing it to just $1. On top of that, Pincus will not receive any performance bonus or equity awards for the year.
In addition, Zynga revealed its new compensation strategy for the rest of its senior executive team. After an exodus of high-level talent last year, Zynga is now focusing on retaining the executive team and incentivizing them with performance-based rewards. The company’s topmost executives will receive base salaries between $425,000 and $500,000, with additional bonuses and cash awards if performance and retention targets are met.
Another component of Zynga’s turnaround strategy includes real-money gaming. The company launched its first real-money titles, ZyngaPlusPoker and ZyngaPlusCasino, in the UK earlier this week. It has also applied for a gaming license in the U.S., a process that could take another year or so to complete.
