Gaming the System

Zynga’s Stock Clawbacks Highlight The Google Chef and The Startup Everyman

We're all in this together...until we're not

The big news yesterday was a piece in the Wall Street Journal which reported that Zynga was demanding stock back from early employees in the run up to their public offering. Employees were being threatened with termination for refusing to rescind their equity.

The WSJ story stated that Zynga executives said they didn’t want a “Google chef” situation, referring to a cook who joined the search engine early on and had $20 million in stock after the IPO. Zynga CEO Mark Pincus released a memo later in the day which found its way into the hands of Fortune’s Dan Primack, that gave credence to this: Read More