Zynga shakes up share/vote system, CEO gets huge influence
Luke Stratford August 29, 2011 - 6:19 pmMoney? Shares? It may not be the next cover-shooter news, but a bold (read: worrying) change to Zynga’s share system has suddenly put a lot of the power in one man’s hands.
Approved by Zyng’as own board, Bloomberg reports that the casual gaming giant has restructured their share/vote system in time for their first IPO (Initial Public Offering), giving CEO Mark Pincus 70 votes per share, up from 7 previously, compared to a public investor’s 1 vote per share.
Although Class V Group principal Lisa Buyer pointed out that the move wasn’t unusual, it was something new for the technology sector, ‘Maybe there are so many early employees that even 10-to-1 would put the ultimate decision power in the hands of too large a group of employees or investors,’ she commented.
Nevertheless, given Zynga’s fearsome reputation for acquisitions, its reputedly ruthless business practices and tendency to…shall we say…homage other titles does raise questions as to whether Zynga is simply making smart moves in the business sector, or capitalizing on an opportunity to wrest control from investors.
