Tuesday, September 11, 2012

Another Resignation To Zynga Inc (NASDAQ:ZNGA) Management Team

Game developer Zynga Inc (NASDAQ:ZNGA) is in serious trouble with several of its top executives having departed in the last couple of months.

The latest in the line to the exit door is its Chief Marketing Officer Jeff Karp, who resigned on Monday.

Zynga, which makes the poplar Facebook game Farmville, has seen an exodus of it top executive including Chief Operating Officer John Schappert and Chief Creative Officer Mike Verdu who quit last month.

The company, whose shares have dropped more than 70 percent since its market debut in December last year, mentioned Karp's departure in a regulatory filing with the Securities and Exchange Commission but did not cite any reasons for it.

Analysts called the departures `unprecedented' and said that they had never seen anything like it elsewhere.

In August in the wake of some high profile exits the company had sought to increase employee compensation to retain them. However it looks like the ply hasn't worked going by the rising pace of resignations.

"When you have turnover with the stock already down that suggests a sense of hopelessness within a portion of the employee base," an analyst Mike Hickey told Reuters.

"I don't think business is great. If people were optimistic about future growth, and their compensation is tied to new, lower priced equity, generally they don't leave."

Zynga had relied a lot on social networking site Facebook for its revenues, but changes in the Facebook platform made it difficult for users to find the games and play it. The company itself has delayed in the release of new titles which has affected its revenues.

No comments:

Post a Comment

Privacy Policy | Legal Disclaimer