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Social games company Zynga is set to pay its new CEO, Don Mattrick, about $20 million in his first year including stock options.
The former Xbox boss revealed his departure from Microsoft on Monday, and will take his new post at the start of next week.
His compensation is, as previously reported, mostly in the form of stock options that won’t fully vest for five years.
According to an SEC filing, Mattrick will be paid an annual salary of $1 million, with an annual bonus of at least twice that and not to exceed $4 million for the first two years.
Mattrick will also be compensated for the stock he gave up in leaving Microsoft with what Zynga deems an equivalent value of $25 million in company shares as calculated on June 26, vesting over three years.
Other stock-based compensation includes $5 million worth of restricted stock and an option to buy another $10 million, vesting over five years.
Mattrick will also be awarded a $5 million sign-on bonus, and is eligible to receive an annual grant of $7 million in equity awards, subject to the board’s approval.
Broken down, this amounts to at least $19.3 million in compensation for the first year, and anywhere from $50 to $100 million for the first five years totaled.
The actual figure will probably be higher than that, as simply adding all the cash and stock promised Mattrick over five years with a very conservative bonus of $1 million for the second half of the period totals $92 million.
This does not take into account the 22 percent rise in Zynga’s share price since the stocks were valued for the package.
While the money isn’t anything to sneeze at, Mattrick’s stock options could make him a very wealthy man indeed if he is successful in getting the company’s market price on the mend.
