Zynga which was once a boom in the software industry has now gone down because things aren’t going well for Zynga lately. In todays time not only its stocks are dropped by a pretty large amount but also it has started to offer incentives to keep employees from leaving. Bloomberg reports that the company was forced to hand out stock to prevent what analyst Arvind Bhatia calls a “mass exodus,” which certainly makes things seem dire for the social games giant.
Zynga was bound to take the steps after it issued its quarterly report on July 25, which was not that astonishing. Reports from bloomberg showed that all full-time employees were given stock options, and even though the company likes to hand out equity bonuses to employees at the end of financial quarters, this was the first time all of Zynga’s employees had access to them.
Will that stock be enough to get these employees to stick around? That’s difficult to say, especially now that Zynga’s stock is sitting below $3 per share. If Zynga can manage to turn its fortunes around, having access to equity in the company will turn out great for those employees, but if the stock price continues to dwindle, employees won’t have much incentive to hang around.