Zynga’s proverbial battleship is currently riddled with proverbial holes, as the company employs a desperate effort to keep 3 thousand employees from quitting their jobs overnight. The incentive? Give every single employee in the company a cut of the stock.
The part where this all started was after July 25th when Zynga’s stock dropped by 70%, going all the way down to $3 per share. According to analyst Arvind Bhatia of banking firm Sterne Agee & Leach Inc. (*gasp*), this move on the part of Zynga was a wise choice. ”It’s a proactive move to prevent mass exodus,” he said. “It’s positive for morale and I think it’s the fair thing to do.”
The part that makes this a little confusing is that Zynga is offering their stock as an incentive for workers to stay under their employment, and yet their dropping stock is the primary reason that the employees want to leave in the first place.