Amid Major Departures, Zynga Enters into Retention Agreements

Features Reuters

Zynga Inc. has entered into retention agreements with two of its executives, after the gaming company's chief executive and operating chief resigned in recent weeks.

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The retention agreements are for Devang Shah, the company's general counsel and vice president, and David Lee, who holds the finance and accounting chief roles.

The agreements stipulate that Mr. Shah and Mr. Lee will receive six months of their base salary and target bonus, as well as an additional six months" vesting of equity awards, if they are terminated without cause or choose to leave for "good reason."

Zynga's shares peaked in early 2012 following the release of popular Web-based games tied to Facebook such as "Farmville," but the company struggled to produce more blockbusters despite shifting focus in recent years to mobile games that consumers now prefer.

Earlier this month, Chief Operating Officer Clive Downie resigned, just weeks after the company announced that Mark Pincus returned as chief executive to replace Don Mattrick, who resigned after less than two years in the job.

Shares, inactive premarket, have fallen 11.6% this month.