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.
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