As per report from Bloomberg, Games developer Zynga Inc(NASDAQ:ZNGA) has given equity grants to employees who saw the value of their stock options eroding with the battering its shares have received following its below-par June quarter results, Bloomberg reported quoting a source.
Stock options were given to all of Zynga’s full-time workers shortly after its earnings report on July 25, Bloomberg quoted the source, who asked not to be identified because the matter was private.
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Though the company routinely gives options and cash bonuses to employees each quarter, this marked the first time equity awards were given to all staff, the person told Bloomberg
The stock has depreciated about 70 percent since its debut in December last year and many of the employees who joined just prior to the IPO seem to have been given significant lots of stock units in lieu of cash.
Concerns over its growth have been the main reason for the pessimism amongst its investors. It is one of Facebook's largest provider of games and its fortunes are closely linked to that of the social network.
Facebook has the habit of constantly changing the features on its site and the introduction of the Timeline feature has made it difficult for loyal users to search for and play Zynga's many games on it, including the popular Farmville.
The decision to offer equity grans is to prevents a stampede a talent, Bloomberg said.
“It’s a proactive move to prevent mass exodus,” Bloomberg quoted Arvind Bhatia, an analyst at Sterne Agee & Leach Inc. in Dallas. “It’s positive for morale and I think it’s the fair thing to do.”
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Stephanie Hess, a spokeswoman for San Francisco-based Zynga, declined to comment on Thursday.
The company had 2,846 full-time employees at the end of last year. Zynga had 77.4 million options outstanding, with a weighted average exercise price of 76 cents apiece, as of June 30, according to a regulatory filing