NEW YORK (AP) - Zynga CEO Mark Pincus received a compensation package valued at $1.7 million in 2011, most of it in the form of a home security system and related expenses.
Zynga Inc. said in a regulatory filing Friday that it spent $1.2 million on the one-time purchase and installation of a security system for Pincus and his family. It was included in roughly $1.4 million of “other compensation for Pincus. The company expects that this will be a one-time expense.
Pincus, 46, lives in San Francisco with his wife and two daughters
Zynga, which went public in December, paid its CEO a base salary of $300,000. Pincus also received a bonus of $3,750. His 2010 compensation package totaled $520,239.
The filing says that Pincus also owns about 94.6 million shares of Zynga’s stock. Based on Friday’s closing price, that’s worth about $806 million. The company’s shares have declined in recent weeks amid investor worries about the company’s ability to keep growing quickly. That’s even though Zynga reported better-than-expected results this week for its first quarter.
Zynga is best known for its Facebook and mobile games, which include “CityVille,” “FarmVille” and “Words With Friends.”
The Associated Press formula calculates an executive’s total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.
The value that a company assigned to an executive’s stock and option awards for 2011 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company’s stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.
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