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Zynga To Employees: Surrender Pre-IPO Shares Or You're Fired

ardmhacha writes "Zynga seem to think they were overly generous handing out stock to early employees. Fearing a 'Google Chef' situation they are leaning on some employees to hand back their unvested stock or face termination. From the article: 'Zynga's demand for the return of shares could expose the company to employment litigation—and, were the practice to catch on and spread, would erode a central pillar of Silicon Valley culture, in which start-ups with limited cash and a risk of failure dangle the possibility of stock riches in order to lure talent.'"

554 comments

  1. Pincus by zakkie · · Score: 0

    ...is clearly a spelling error.

    1. Re:Pincus by Cryacin · · Score: 5, Insightful

      Coming from a company with stellar ethics like Zynga, what do you expect?

      Unfortunately, these slimeballs are smart enough to figure out ways to screw their employees, their customers, and in fact anyone with a dollar in their pocket.

      Too bad for the honest hard working startups that are prepared to do the hard yards and get their just rewards. This will definitely have ripples of distrust that permeate deeply.

      --
      Science advances one funeral at a time- Max Planck
    2. Re:Pincus by Anonymous Coward · · Score: 5, Interesting

      Totally true, they have a very strange history, from their funding coming from the Russian mafia, to the events of today.

      The place itself is supposedly a real grid to work in, so it is likely all these employees deserve their options. However, management always holds the power in situations like this, and more importantly, the investors that control management. If they are indeed controlled by the Russian mafia, isn't it better that these programmers give up their stock options rather than lose fingers?

    3. Re:Pincus by Anonymous Coward · · Score: 0, Informative

      Hey AC, top posting is how the game works, if you don't like it, don't play.

    4. Re:Pincus by sneakyimp · · Score: 3, Interesting

      Agreed, f*ck Zynga. Boycott, anyone?

    5. Re:Pincus by Canazza · · Score: 3, Funny

      what do they do again?

      --
      It pays to be obvious, especially if you have a reputation for being subtle.
    6. Re:Pincus by JoeMerchant · · Score: 5, Insightful

      FarmVille, etc. I already boycott based on lack of interest in the product.

    7. Re:Pincus by Grimmreaper74 · · Score: 1

      I have been

      --
      Live life to the fullest, you only get one chance at it.
    8. Re:Pincus by AngryDeuce · · Score: 1

      I've been boycotting for two years, where've you been?

    9. Re:Pincus by Ethanol-fueled · · Score: 2

      Too bad for the honest hard working startups that are prepared to do the hard yards and get their just rewards.

      Hmmph, at least somebody in the tech industry is working to prevent future bubbles by discouraging rampant startups and the idiots who invest money in them.

      Zynga are the heroes of the ninety-nine percent.

    10. Re:Pincus by mug+funky · · Score: 0

      +1

      who gets modpoints these days? i haven't had them in weeks.

      maybe i troll too much?

      Zynga might possibly be liable for lost hours of productivity in many other companies... but so would Slashdot.

    11. Re:Pincus by mattack2 · · Score: 1

      Well, I don't "boycott" them, but don't use them on FB.. But the free iPhone games can be fun (I only play one regularly).. They even *VAGUELY* nag me to buy the non-free one, but it's basically at a "continue" button I would press anyway. (I mean, I think they SORT of add another step in finishing my turn than absolutely necessary, but the game at least _seems_ to be talking to the server at that point anyway..)

    12. Re:Pincus by Zamphatta · · Score: 1

      I got mod points. I didn't even realize it for days. I thought that little badge/medal thingy was just a new piece of design by Slashdot. Had no clue why it was there.

    13. Re:Pincus by 19thNervousBreakdown · · Score: 1

      I think it is, the star thing is showing up for me, but I have no mod points. It seems to just be an interface to bring up the "top 10" lists.

      --
      <xml><I><am><so><damn>Web 2.0</damn></so></am></I></xml>
    14. Re:Pincus by Pausanias · · Score: 5, Interesting

      Up until 2006 or so, I used to get mod points regularly, every week.

      Then suddenly I stopped getting mod points. That was about 5 YEARS ago.

      *Nothing* for 5 YEARS.

      Then, suddenly, yesterday, I got some again.

      What the hell kind of algorithm can lead to a 5 YEAR hiatus in mod point allocation?

    15. Re:Pincus by Anonymous Coward · · Score: 0

      The "badge/medal thingy" is the hall of fame. has nothing to do with getting/having mod points.

    16. Re:Pincus by hairyfeet · · Score: 3, Interesting

      Won't work because you'll never get the females to agree and that is their bread and butter. I have literally had females come in and have their machine built around how well it would run that Zynga crap. Farmville, Mafia Wars, Frontierville, they eat that crap up. It used to drive me nuts when my now ex GF would stay the weekend with me that at 7:AM on the dot she'd play her hour of Farmville. That was as much a part of her morning routine as my morning caffeine and she wasn't happy unless she got it so I kept a spare desktop in the corner just for her so I wouldn't hear the clicking when I was trying to sleep.

      As for TFA "Scummy company treats employees like shit and tries to fuck them over" news at 11 and here is Cathy with the weather "Water is wet Bill, back to you".

      --
      ACs don't waste your time replying, your posts are never seen by me.
    17. Re:Pincus by theshowmecanuck · · Score: 1

      You're right. It's actually spelled 'cunt'.

      --
      -- I ignore anonymous replies to my comments and postings.
    18. Re:Pincus by Jeremiah+Cornelius · · Score: 0, Troll

      Jews.

      --
      "Flyin' in just a sweet place,
      Never been known to fail..."
    19. Re:Pincus by NivenHuH · · Score: 1

      There's a star thing?!

      --
      Just when you make it idiotproof, some idiot builds a better idiot.
    20. Re:Pincus by BetterThanCaesar · · Score: 0

      I had a similar problem. Then I took a drink from the Firehose, and what do you know, I got modpoints again! Metamoderating might help too. Apparently the system favours a sort of balance of activites.

      --
      "Stop failing the Turing test!" -- Dilbert
    21. Re:Pincus by Tatarize · · Score: 1

      Reading your post I suddenly noticed that I too have mod points. It's been like 5 years here too. Hm.

      --

      It is no longer uncommon to be uncommon.
    22. Re:Pincus by berglin · · Score: 0

      Same here, years of nothing then suddenly, fresh modpoints
      I've done nothing out of the ordinary. This is my first post in years.
      I think they've simply updated the code that calculates the distribution.

    23. Re:Pincus by mcvos · · Score: 1

      I've got mod points almost always. I barely use them.

    24. Re:Pincus by mcvos · · Score: 1

      I don't metamoderate, rarely sip from the firehose, yet I often get new modpoints just when my old batch runs out.

    25. Re:Pincus by mcvos · · Score: 1

      Zynga are the heroes of the ninety-nine percent.

      No, not really. Zynga is the hero of its owner. And he's definitely in the 1%.

      If they were the heroes of the 99%, they'd let their employees reap their share of the profits.

    26. Re:Pincus by Hal_Porter · · Score: 1

      When they asked you to pick up the can, they really meant it.

      --
      echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
    27. Re:Pincus by mwvdlee · · Score: 0

      But then those employees would become part of the 1%, or perhaps the 99% would become the 98% then.
      Personally I don't get why those bottom 1% think they represent 99% of the populace.

      --
      Slashdot social media options: AIM, ICQ, Yahoo, Jabber and Mobile Text. Why no MySpace?
    28. Re:Pincus by Fallingwater · · Score: 1

      Yes, a boycott from a bunch of nerds on Slashdot will definitely hit them, it's not like they have a planetload of users.

      Oh, wait...

    29. Re:Pincus by jbeaupre · · Score: 1

      A good one.

      --
      The world is made by those who show up for the job.
    30. Re:Pincus by mapkinase · · Score: 1

      Low five?

      --
      I do not believe in karma. "Funny"=-6. Do good and forbid evil. Yours, Oft-Offtopic Flamebaiting Troll.
    31. Re:Pincus by Inda · · Score: 1

      I didn't get mod points for a few years.

      I put it down to trolling Taco about his dress sense on a TV interview.

      Did you do something similar?

      --
      This post contains benzene, nitrosamines, formaldehyde and hydrogen cyanide.
    32. Re:Pincus by hosecoat · · Score: 1

      i already do. I dont even consider it a boycott so much as 'i dont trust that company or their ethics and i dont want anything to do with them or have any access to my information'. Or maybe im just a luddite when it comes to facebook games. Or maybe they are just stupid.

    33. Re:Pincus by hosecoat · · Score: 2

      This should comfort potential IPO investors that this company is well run and managed. Plus a round of employee firing, and employee lawsuits ought to really assure them.

    34. Re:Pincus by Kamiza+Ikioi · · Score: 1

      I was getting them every other day a few months ago, then switched off again. I think it's because at the time, I was pulling in a couple +5 Insightfuls a week, and now, I pull a few +0 Trolls a month, lol.

      You can please all of the people some of the time, and some of the people all of the time, but sometimes you can't please /. mods at all. ;)

      --
      I8-D
    35. Re:Pincus by Anonymous Coward · · Score: 0

      Being a troll doesn't help.

    36. Re:Pincus by Z00L00K · · Score: 1

      Never seen it.

      I'm going back to play Civilization III again...

      --
      If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
    37. Re:Pincus by Pausanias · · Score: 1

      We both have SlashID's starting with 68... Hmmmm... sound like a glitch in the system, then.

    38. Re:Pincus by Tatarize · · Score: 1

      Not just 68, but our IDs are like 1500 apart. We likely registered within a few days of each other. *shrug*

      Nice to have em back.

      --

      It is no longer uncommon to be uncommon.
  2. Mafia by jimi1x · · Score: 5, Funny

    Is the mafia running this company or something?

    1. Re:Mafia by Grishnakh · · Score: 5, Insightful

      I don't see how this is all that different from the way most large American corporations operate these days.

    2. Re:Mafia by Surt · · Score: 5, Informative

      Yes. Their management is well known for doing all kinds of borderline illegal stuff. Seriously, look up stories about how they got started.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
    3. Re:Mafia by mrmeval · · Score: 0

      They shill an addictive product to millions of suckers legally. No I think they're big tobacco or Eli Lily.

      --
      I'd go on a Vegan diet but the delivery time from Vega is too long. --brownkitty
    4. Re:Mafia by suso · · Score: 3, Funny

      They shill an addictive product to millions of suckers legally. No I think they're big tobacco or Eli Lily.

      Or Red Bull (And yes I'm drinking one right now)

    5. Re:Mafia by vijayiyer · · Score: 5, Insightful

      I think demanding already paid compensation to be returned is very different from the way most American corporations operate. I've never heard of it before. It's mind boggling, and if I were said employee, I'd definitely quit on the spot.

    6. Re:Mafia by Surt · · Score: 5, Informative

      Quitting is a bad move. Getting fired is much, much better for your lawsuit.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
    7. Re:Mafia by Culture20 · · Score: 4, Insightful

      I wouldn't. I'd tell my lawyer to prepare his largest vault and stand my ground. There are times when suing is the right course of action.

    8. Re:Mafia by Chris+Burke · · Score: 2, Insightful

      Then you're blind.

      And if you interpret this as a defense or implicit approval of the behavior of most large American corporations, then you're deaf.

      Distinguishing: A lost art of great value.

      --

      The enemies of Democracy are
    9. Re:Mafia by Grishnakh · · Score: 5, Interesting

      This particular tactic is definitely new, but the entire culture of sociopathic behavior is nothing new to large American corporations. This one has simply found a new way to be total assholes.

      Given that they're in California, which is a very employee-friendly state (one of the few I believe where non-competes are unenforceable), hopefully they'll lose their shirts after some newly-fired employees sue their sorry asses.

    10. Re:Mafia by Colonel+Korn · · Score: 5, Interesting

      Yes. Their management is well known for doing all kinds of borderline illegal stuff. Seriously, look up stories about how they got started.

      Not just borderline. I don't know about this mafia control stuff, but I remember their direct pixel for pixel use or art assets from...was it Age of Empires?

      --
      "I zero-index my hamsters" - Willtor (147206)
    11. Re:Mafia by sjames · · Score: 4, Insightful

      Clearly not. The Mafia might be a criminal enterprise, but they have always understood that without your word, you're nothing.

    12. Re:Mafia by Surt · · Score: 1

      Thanks for that followup, I remembered they had done some actual illegal stuff, but didn't want to make the claim without a reference handy.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
    13. Re:Mafia by mrmeval · · Score: 1

      You poor corprat slave you!

      --
      I'd go on a Vegan diet but the delivery time from Vega is too long. --brownkitty
    14. Re:Mafia by sjames · · Score: 4, Informative

      Sadly, it happens. Usually it's in the form of reducing retirement benefits after employees have already put the time in.

    15. Re:Mafia by Anonymous Coward · · Score: 1

      I think I might be the only one to get the Mafia Wars joke on here....

    16. Re:Mafia by fuzzyfuzzyfungus · · Score: 2

      I would actually be fascinated to see some research(probably not practical to carry out, unfortunately) as to which mode of business produces a greater proportion of destructive and sociopathic leadership...

      Does a criminal environment, with its, er, vigorous, competition and possibility of advancement through killing people? Or does the rule of law, where smirking and saying "We did nothing illegal" won't get you shot by the people you've just stiffed?

    17. Re:Mafia by wpiman · · Score: 5, Insightful

      Typically they just issue new shares and dilute current shares; while giving management and investors a number to keep their percentages the same. This is a far more insidious way to screw over the little guy that the old way.

    18. Re:Mafia by similar_name · · Score: 1

      Or Red Bull (And yes I'm drinking one right now)

      Mmmm, Bile.

    19. Re:Mafia by JoeMerchant · · Score: 5, Insightful

      Mod Parent up +5 Sad Truth.

      just issue new shares and dilute current shares; while giving management and investors a number to keep their percentages the same.

      Similarly, mark Zynga clueless for trying something so boneheaded when the parent's tried and true method accomplishes the same thing, but in a way that has been, sadly, accepted by the establishment for years.

    20. Re:Mafia by muon-catalyzed · · Score: 1

      Pitbull in the logo... just Google "zynga suing", they make Microsoft look like the good guys.

    21. Re:Mafia by Chris+Burke · · Score: 5, Funny

      If you think most large American corporations are run by honest people who actually value their employees and wouldn't even think of defrauding them to improve their bottom line (and executive compensation) if they could get away with it cleanly, then you're an idiot.

      If someone had asked me "Hey Chris, if you could put words in Grishnakh's mouth, what would you have them say in order to perfectly exemplify your point?" I would have replied with something almost exactly like what you just wrote. It's uncanny.

      Even though I flat out told you it was not the case, you still took my statement that most companies are not equally abusive to their employees as this to mean that they are wonderful places that love and support their employees without fail.

      You've literally declared your inability to distinguish between anyone who isn't completely trustworthy, unable to even think of defrauding their employees. Well, guess what? In reality, nobody is completely trustworthy, and there are many degrees of untrustworthiness. There are many degrees of contempt for employees. By thinking only in absolutes, you've failed to notice when something is the same in kind but exceptional in degree. This is catastrophic to problem solving, which in the real world requires targeted efforts and nuanced understanding.

      Distinguishing: It matters. It seems to be an increasingly lost skill. I guess because "A is not X and B is not X therefore A = B" is nice and easy "logic". But I think it is ruining our discourse and ability to realistically address our problems in this country.

      --

      The enemies of Democracy are
    22. Re:Mafia by wdavies · · Score: 4, Interesting

      There's a related study about how succesful managers in modern corporations are closer to pyschopaths than average.

      http://www.medkb.com/Uwe/Forum.aspx/alternative/43595/Question-Authority

    23. Re:Mafia by Anonymous Coward · · Score: 2, Interesting

      This, for sure. I have personally had it happen to me. Dilution of shares is definitely the most popular way to get fucked over.

      Another one is where they sell or otherwise break up and restructure the company right before your options vest, making them worthless. Had that happen to me too.

      Trust no one.

    24. Re:Mafia by Anonymous Coward · · Score: 0

      He's just another asshat that wants to equate anything going on with a rip off with every other corporation. He's not insightful and those that modded him up are obvious knee jerk dickweeds too.

    25. Re:Mafia by Anonymous Coward · · Score: 0

      Are you sure you aren't thinking of Evony?

      http://arstechnica.com/gaming/news/2010/03/evony-investigating-the-game-everyone-loves-to-hate.ars

    26. Re:Mafia by Oxford_Comma_Lover · · Score: 4, Insightful

      I wouldn't. I'd tell my lawyer to prepare his largest vault and stand my ground. There are times when suing is the right course of action.

      There are times when *threatening to sue* is the proper course of action. There are fewer cases where filing a complaint (i.e. initializing a lawsuit) is a proper course of action. It is much, much rarer for suing and going to trial to be the proper course of action.

      Lawsuits take years, cost major time and money--usually even if you win, though then it is a net gain--and the outcome is not assured. Settlement is usually (though not always) the rational choice, unless the other side is being irrational or is poorly advised.

      --
      -- IANAL, this isn't legal advice, and definitely isn't legal advice for you. Also, Squee!
    27. Re:Mafia by Anonymous Coward · · Score: 0

      Someone doesn't get the inside joke. Mafia wars is one of their games, hence the pun, not that it's an actual mafia.

    28. Re:Mafia by shutdown+-p+now · · Score: 5, Informative

      The problem is that this is about yet-unvested stock - so if an employee quits, or is terminated for cause, he'll never get to vest them and loses them all. So company, basically, demands that employee surrenders a part of his unvested stock in exchange for being given an opportunity to vest the remainder.

      That said, I've never heard of that ever happening, large corporations or no. Certainly not from anyone I know at Microsoft or Google. You can kinda understand why, too - it's morally equivalent to promising a certain payment upfront, and then reneging on it. The effect of doing so, especially in a way as public as this, will severely affect company's ability to attract talent. I mean, I know that I would never, ever consider working for Zynga after this news, and I bet many people would agree on that. I don't know what the hell they were thinking with this. Unless, of course, they plan on switching to 100% H1-B for rank and file (and even then the ones that are actually good would still skip on such an offer).

    29. Re:Mafia by bmo · · Score: 1

      Software publishers and drug pushers call their customers "users" for a reason.

      --
      BMO

    30. Re:Mafia by microbee · · Score: 1

      No. You are missing two points.
      1. Most large American tech companies don't operate like this these days.
      2. It's a startup. It's not supposed to behave like a large corporation, or nobody would work there.

      This is what attracts so many talents in the silicon valley. Talents are cherished there in the valley. This is definitely not the norm.

      That said, this is of course not unprecedented either. Steve Jobs screwed over early employees at Apple too, and according to his biography, he asked employees at Pixar to give up options too (but to be fair, at that time Pixar was in financial trouble, unlike Zynga).

    31. Re:Mafia by uncqual · · Score: 1

      Yes... My first impression is that this shows how stupid their management must. To deal with the "some employees got lazy", just don't grant the lazy employes nearly as significant options in the new stock, "hard working" employees get made whole or better by new options. Little press, little bad PR. Sure, some people think they've been screwed, but to show it they have to reveal how many shares they had and were newly granted - which is probably a violation of company policy (sharing your compensation with other employees) and they get fired for cause.

      Zynga - not too smart.

      --
      Why is there an "insightful" mod and why isn't it "-1"? If I wanted insight, I wouldn't be reading /.
    32. Re:Mafia by PrimaryConsult · · Score: 1

      Also breast milk.

    33. Re:Mafia by Anonymous Coward · · Score: 1

      Another one is where they sell or otherwise break up and restructure the company right before your options vest, making them worthless.

      Ditto! They created a new share class in my case making the previous classes essentially worthless.

    34. Re:Mafia by black6host · · Score: 4, Interesting

      This, for sure. I have personally had it happen to me. Dilution of shares is definitely the most popular way to get fucked over.

      Another one is where they sell or otherwise break up and restructure the company right before your options vest, making them worthless. Had that happen to me too.

      Trust no one.

      Perhaps this would make a good ask /. submission. How do you avoid getting screwed over the old fashioned way. And this way as well. I'm sure there will be plenty of IANAL, and consult your attorney answers but there have to be some who have successfully negotiated this maze...... And the more you know when going to an attorney the better off you are in either a) judging their competence and/or b) saving a bit of cash by doing some upfront research so you're asking questions that are relevant.

    35. Re:Mafia by mysidia · · Score: 5, Insightful

      There are times when *threatening to sue* is the proper course of action. There are fewer cases where filing a complaint (i.e. initializing a lawsuit) is a proper course of action. It is much, much rarer for suing and going to trial to be the proper course of action.

      Probably don't "threaten to sue" in such a situation; get your lawyer to write some warning letters, first of all.

      People casually threaten to sue all the time and aren't serious about it -- make sure they know you've done your homework and are serious about pursuing what course you need to best defend yourself from unjust treatment.

    36. Re:Mafia by JazzHarper · · Score: 1

      This is NOT "already paid compensation". These are UNVESTED restricted stock units. If you quit, retire, are fired or laid off, the unvested shares do not vest. That's pretty standard for "golden handcuffs".

      It's also quite common for restricted stock and option grants to include non-compete conditions which would be completely illegal in an employment contract. Your acceptance of a grant is purely voluntary--it's not a condition of your employment--so they can attach whatever strings they want to it.

    37. Re:Mafia by Firehed · · Score: 2, Interesting

      I've never heard of founders having anti-dilution rights, and even if they did it would be very unlikely they'd be able to exercise them (unless they have their own massive cash war-chest). When investors have them, they don't get free shares, but rather the option to buy enough additional shares at the new valuation to keep their ownership percentage the same. Companies may issue more options after raising a round but there are usually strings attached - and when that round is an IPO, there's quite a bit of scrutiny (see: Groupon)

      That said, it's very typical that only founders and VERY early employees end up with any significant amount of money, and only then if they're not dealing with ownership that's shady as fuck. I have little sympathy for anyone that gets screwed by Zynga since they're actually quite transparent about not operating on the up-and-up (Pincus is quite obviously a psycho, and just look at their "products" if that's not enough) so it's not too hard to see this kind of thing coming. But any talented developers who want to reclaim what's left of their soul... get in touch with me.

      --
      How are sites slashdotted when nobody reads TFAs?
    38. Re:Mafia by Anonymous Coward · · Score: 1

      So true. When a startup I worked for since shortly after its founding eventually sold, so my 6 years of options were finally liquid, I ended up with $75. The directors, who all came in half way through the company's life and pushed the founders out, made enough to retire.

    39. Re:Mafia by Anonymous Coward · · Score: 0

      Distinguishing is absolutist and racist and insufficiently hand-wringy. It simply won't do.

    40. Re:Mafia by Anonymous Coward · · Score: 0

      Yeah, but then we wouldn't get to have an anti-corporate circlejerk.

    41. Re:Mafia by 93+Escort+Wagon · · Score: 4, Funny

      You've literally declared your inability to distinguish between anyone who isn't completely trustworthy, unable to even think of defrauding their employees. Well, guess what? In reality, nobody is completely trustworthy, and there are many degrees of untrustworthiness. There are many degrees of contempt for employees. By thinking only in absolutes, you've failed to notice when something is the same in kind but exceptional in degree. This is catastrophic to problem solving, which in the real world requires targeted efforts and nuanced understanding.

      Dude - Grishnakh's an orc. They're not really known for their subtleties in thought.

      --
      #DeleteChrome
    42. Re:Mafia by Professr3 · · Score: 5, Insightful

      Don't take a job based on shares. Just assume they're going to make them worthless in the long run. Yeah, it makes it harder to join a startup early on, but it's the funded startups you want to work for, anyway.

    43. Re:Mafia by SwedishChef · · Score: 5, Interesting

      Sadly, it happens. Usually it's in the form of reducing retirement benefits after employees have already put the time in.

      I worked at a company that would fire employees who got close to the point at which they were "vested" in their retirement plan. At one point they had to scramble around and fire a poor guy who had been there almost ten years; they discovered he had enough vacation time to put him over the vesting period (which then was ten years).

      That was when I - and several others - started looking for new jobs.

      --
      No one ever had to evacuate a city because the solar panels broke!
    44. Re:Mafia by Mr.+Freeman · · Score: 5, Insightful

      Threatening to sue has all the weight of someone threatening to beat you up over the internet. People scream "I'M GOING TO SUE" for every single fucking thing nowadays. The proper action would be to retain legal council and make them aware of the situation immediately. They might write a warning letter, but this is much different than you, without representation, telling your company that you're going to sue them.

      --
      -1 disagree is not a modifier for a reason. -1 troll, flaimbait, redundant, overrated are NOT acceptable substitutes.
    45. Re:Mafia by neonmonk · · Score: 0

      I really wish I had mod points. This has to be one of the most brilliant rebuttals ever to appear on Slashdot.

    46. Re:Mafia by ridgecritter · · Score: 2, Insightful

      "Another one is where they sell or otherwise break up and restructure the company right before your options vest, making them worthless."

      Negotiate that your options vest monthly. Forget waiting a year for vesting, or even six months. Things change too fast now.

    47. Re:Mafia by JoeMerchant · · Score: 3, Insightful

      I feel like I have hedged against getting too screwed by one simple method: making sure I get at least 90% of "my market value" in salary. Stock is a nice bonus when it works out, I worked at one place that did a "standard employee purchase plan" that worked very well for me, almost like a 15% bonus every 6 months. But, the high risk, "potentially very wealthy" deals have always turned to their most likely result in the end: zero value.

    48. Re:Mafia by Anonymous Coward · · Score: 0

      If you quit, generally you lose all options.

    49. Re:Mafia by Anonymous Coward · · Score: 0

      If you quit you generally lose the options. If you're fired you lose the options (assuming they haven't vested). It's sleazy and dishonest but it's not the same as "already paid compensation".

      The story I heard was they were asking low performers to give back a portion of their options or be terminated. If the company is really worth what they seem to think and there are enough options out there to make you rich you should just get fired and then sue...it's the only way to come out ahead under this scenarios when you have an option that can't be traded on the open market or exercised until after an IPO and they're going to fire you pre-IPO.

    50. Re:Mafia by Chris+Burke · · Score: 2

      Dude - Grishnakh's an orc. They're not really known for their subtleties in thought.

      Somewhere in Azeroth, Thrall is facepalming.

      --

      The enemies of Democracy are
    51. Re:Mafia by mrmeval · · Score: 1

      Publisher in general. Book readers need their book crack.

      --
      I'd go on a Vegan diet but the delivery time from Vega is too long. --brownkitty
    52. Re:Mafia by Wansu · · Score: 1

      Threatening to sue has all the weight of someone threatening to beat you up over the internet.

      Agreed. Actions speak louder than words. Just do it.

      --
      Wansu, th' chinese sailor
    53. Re:Mafia by Compaqt · · Score: 2

      What, do companies really do that? Telling people how much you make is a firing offense? Nuts.

      --
      I'm not a lawyer, but I play one on the Internet. Blog
    54. Re:Mafia by Wansu · · Score: 1

      Typically they just issue new shares and dilute current shares ...

      It's yet another reason stock options are frequently a soggy deal for the rank and file.

      --
      Wansu, th' chinese sailor
    55. Re:Mafia by bmo · · Score: 1

      in High School, I had a 2 book a week habit.

      The corner book shop in Wickford RI got a lot of my lawn-mowing money.

      --
      BMO

    56. Re:Mafia by Anonymous Coward · · Score: 2, Interesting

      That wasn't Zynga, that was Civony (the name of which also caused them some problems, so now they go by another name I don't care to advertise).

    57. Re:Mafia by Anonymous Coward · · Score: 0

      Excellent.

    58. Re:Mafia by demonlapin · · Score: 1

      Don't ever work for less than your full market value if you don't want to get screwed. If you take stock options or a percentage ownership, hire a very, very good lawyer to write the terms for you - because you will be diluted out of existence otherwise.

    59. Re:Mafia by Anonymous Coward · · Score: 0

      In this economy, where people are fighting tooth and nail with 20+ other people for every job opportunity, you think 'attracting talent' is something anyone is really worried about?

    60. Re:Mafia by Dahamma · · Score: 1

      Yeah, that part is almost more amazing than the pure sleaziness - that they somehow think stealing shares granted to current employees will somehow help attract new ones...

    61. Re:Mafia by Anonymous Coward · · Score: 0

      Name these companies. Fucking out these sleezy ratbastards!

    62. Re:Mafia by shutdown+-p+now · · Score: 1

      Actually, yes, I do. Despite all the unemployment talk, during the last round of hirings hereabouts, a friend of mine (who is a manager) had a very hard time finding a competent candidate to fill in a vacant position, and he wasn't even asking for that much. Sure, there was a horde of people willing to apply, even after all the pre-screenings, but even afterwards you'd get people who couldn't solve basic coding tasks on a whiteboard (I think one guy struggled with sorting an array for about an hour - note that bubble sort and simply using the standard library were both valid solutions!). And it's not like the salaries here are low, either - I think the lower bound is somewhere in the area of $80k, not counting the stock - especially considering unemployment etc.

      For another take on the same, remember how Google did a 10% raise for all its employees last year?

    63. Re:Mafia by hot+soldering+iron · · Score: 5, Interesting

      There used to be a common misperception that the age of expansion of the American West was lawless with murdering, theft, and rape a daily occurance. People were actually quite civilized, often more so than today. You were very likely to be shot dead for acting like an a*hole, especially to a lady. A vigilante hanging of people that wouldn't conform to the norms of society was often performed during a Sunday picnic, so the children would have an up close and personal experience of what would happen if they made poor choices in life.

      In my past life, I quite often found that when my drug-dealing friends said that they would do something, it happened. Even if they got shot to make it happen. I got screwed over so many times by the preacher's kids, and other scumbags like them, it wasn't funny. It almost got to where a suit and tie meant someone was out to rob me/lie to me/screw me over. "Real" people backed up their word with their life.

      I think the biggest lesson I've learned in life is that when people are held accountable for their actions with the valid threat and rapid application of violence, they act the most "civilized". It's almost like dealing with small children, sometimes the closest way to get a lesson to their brain is through their butt. It seems like every "civilization" that removes or reduces the threat of violent consequence to members for their actions, doesn't last long. They go down in flames of revolution, political corruption, and general anarchy. They look much like we do today.

      --
      When you want something built, come see me. If you want correct grammar and spelling, get a F*ing liberal arts student.
    64. Re:Mafia by Anonymous Coward · · Score: 0

      In unrelated news, the CEO of said company was found bludgeoned to death near his Mercedes in the company parking lot. A heavy keepsake with the engraved words "thanks for a decade of service" was found next to the corpse, spattered with blood, chunks of skull, and brain matter. Although inconclusive, it appears the body was defecated on, post-mortem, and the testicles were found in the oral cavity.

    65. Re:Mafia by Thing+1 · · Score: 1

      which is probably a violation of company policy (sharing your compensation with other employees) and they get fired for cause.

      Yeah, I'm with my sibling poster: communication about compensation should not result in termination. If it does, then management must have some benefit from keeping employees from being able to discuss their relative compensation. (Not paranoid; just understanding the consequences of decisions.)

      --
      I feel fantastic, and I'm still alive.
    66. Re:Mafia by PopeRatzo · · Score: 1

      I think demanding already paid compensation to be returned is very different from the way most American corporations operate.

      Don't you think breaking a contract with your workers to be the same as demanding back compensation?

      We've got lots of companies doing that.

      --
      You are welcome on my lawn.
    67. Re:Mafia by sjames · · Score: 1

      That would be an interesting study. In spite of serious drawbacks, the Mafia method is able to deal with the many many things that are not codifiable in law but that we all know should be a crime. It also has the advantage of being distributed. You can convince a police department that you're too important (or politically dangerous) to go after, but you can't convince every person you might meet. especially if you ever leave someone feeling that they have little to lose.

      In some ways, the rule of law has gotten too certain and too strong to be able to handle such things. I don't recommend that we go around whacking each other, but the real chance of a beating might contain a lot of lesser sociopathic behavior. These days, that's made too unlikely by a civil and criminal court system that doesn't recognize sore provocation as a defense. The sociopath is far too likely to be

    68. Re:Mafia by V.+P.+Winterbuttocks · · Score: 1

      I think that was the most unfulfilling Wikipedia link I've ever clicked.

      --
      I'm the real Vorokrytin P. Winterbuttocks.
    69. Re:Mafia by Anonymous Coward · · Score: 0

      And, generally, employee purchase programs have per share floors, where you never get less than a base floor price in the given share purchasing period even if the share price dips below that value.

    70. Re:Mafia by Anonymous Coward · · Score: 0

      Startup I worked for(well, was essentially a startup for 20 years, and a very successful one) sold for somewhere north of one hundred million to a multibillion dollar corporation. The 3 founders got tens of millions each. The rest of us(~60) got $500 each. Pretty shitty all things considered. So much for profit sharing.

    71. Re:Mafia by MechaStreisand · · Score: 5, Insightful

      Management at companies like that need to do hard time. 20 years in prison would be nice. That's the only thing that will stop this.

      --
      Disclaimer: IANAL. This post is, however, legal advice, and creates an attorney-client relationship.
    72. Re:Mafia by Oxford_Comma_Lover · · Score: 3, Informative

      Yes; I meant threaten to sue with the help of an attorney.

      --
      -- IANAL, this isn't legal advice, and definitely isn't legal advice for you. Also, Squee!
    73. Re:Mafia by Anonymous Coward · · Score: 0

      I think demanding already paid compensation to be returned is very different from the way most American corporations operate. I've never heard of it before.

      Google "Skype stock options"...most, perhaps, but not all.

      It's mind boggling, and if I were said employee, I'd definitely quit on the spot.

      Doesn't it kinda defeat the purpose to give the company exactly what it wants? The whole issue is that the company is pressuring employees to quit so that they leave unvested options on the table. Taking a moral stand would mean riding out the hell that they'll put you through for the duration of your vesting period rather than quitting.

    74. Re:Mafia by Anonymous Coward · · Score: 0

      Zynga

    75. Re:Mafia by Fjandr · · Score: 1

      They need to do hard time 6 feet under.

    76. Re:Mafia by uncqual · · Score: 1

      Actually, the job market is fairly hot for top-notch startup caliber developers - I've seen it hotter, but it's pretty good right now. Of course, these developers virtually never "look" for a job, they are just a little more susceptible to being enticed away depending on how much they love their current job. Nope, I've got no idea if Zynga has folks of this caliber.

      --
      Why is there an "insightful" mod and why isn't it "-1"? If I wanted insight, I wouldn't be reading /.
    77. Re:Mafia by kermidge · · Score: 1

      Yes. Like you, I've seen a bit of this in practice. It's not always fair, and it's not always right, but it often works.

      Heinlein pointed out, in one of his stories, that 'an armed society is a polite society.'

      Third para is right on the money.

    78. Re:Mafia by evil_aaronm · · Score: 1

      I think we're channelling, here. I can't tell you how many times I've suggested to my wife or anyone that would listen that we bring back duels to settle matters of honor. Some asshole from Jersey - redundant, I know - cut you off? Chase him down and challenge him to a duel on the side of the road. Someone cut in front of you at the popular ride at the carnival? Challenge him to a fight, right there. Your boss steals the credit for your brilliant idea? Pistols at high noon in the parking lot.

      Sure, people might lose their lives, but, on the plus side, we'd end up with fewer assholes, too. Or fewer people acting like assholes because there's no accountability.

    79. Re:Mafia by Xaositecte · · Score: 5, Informative

      Eh, Barring employees from talking about wages is a violation of The national labor relations act. I'd cry tears of joy if I had it on paper someone was firing me for that reason, because winning the resulting lawsuit would be basically guaranteed.

    80. Re:Mafia by Anonymous Coward · · Score: 0

      Without knowing the actual stock options contract, usually there is 2 week grace period to exercise vested stock options in case of termination or resignation. An old enough employee may not have exercised the options yet, but certainly has a large number vested.

    81. Re:Mafia by zachie · · Score: 1

      You seriously think it is right to have a 50% death toll on such conflicts? Unless by a fight you mean a bare fist fight, in which case I can't see how having a society where Mike Tyson is always right is good in any way.

    82. Re:Mafia by shentino · · Score: 1

      Bingo.

      Who has the most bargaining power and the most leesh to bully the weaker?

      In this world it's all about power and politics.

    83. Re:Mafia by shentino · · Score: 1

      And the fact is that people are still desperate enough for a job that they'd rather bend over and take it.

    84. Re:Mafia by Stellian · · Score: 1

      ... while giving management and investors a number to keep their percentages the same.

      Are you so sure about the bolded part ? Assuming the majority of stock holders agree with issuing new shares, the proceeds of selling those shares belong to the company, so all stock holders gain by the same amount they are loosing through share dilution. Sure, the management can decide to use the cash for rewarding itself with higher bonuses to compensate the stock loss; however I can't see they can discriminate against existing stock holders.

      On the other hand, we're talking about stock options; if the contract says the employees have the option to buy 1000 shares at 1$ each, and the stock price has jumped to 500$ in the meantime, then yes, issuing 500x more stock is the legal and accepted way to "solve the problem". I assume the contracts of these Zynga employees says a different thing.

    85. Re:Mafia by Anonymous Coward · · Score: 0

      There are times when suing is the right course of action.

      When you stand to benefit?

    86. Re:Mafia by evil_aaronm · · Score: 1

      Duels weren't always fatal. In fact, some duels were "settled" by discharging the pistols into the ground, intentionally, allowing both parties to maintain their "honor" without either getting hurt.

      However, in the short term, yes, I'd take a 50% mortality rate, if it changed peoples' behavior, overall, and I believe it would. First few reports of people dying in such circumstances, and lots of other borderline asshats would think twice about being an asshat. Sociopaths would probably take out a few people disproportionately, but, statistically speaking, they'd get theirs, at some point: they just couldn't avoid it. At which point, we're all better off: one less sociopath.

      Contrast that with the current situation where people behave with no concern for consequences but project it toward infinity. Do you see the situation improving?

    87. Re:Mafia by AmiMoJo · · Score: 1

      It happened to my mum. Her employer accidentally overpaid her for about two years, then when they realised the problem demanding all the money back. Of course wages from two years back were already spent and legally they couldn't deduct it from her future pay packets, so in the end they had to back down.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    88. Re:Mafia by mickwd · · Score: 4, Insightful

      "People were actually quite civilized, often more so than today."

      "A vigilante hanging of people that wouldn't conform to the norms of society was often performed during a Sunday picnic, so the children would have an up close and personal experience....."

      How very civilized.

    89. Re:Mafia by Surt · · Score: 1

      Sure. But I don't think that applies to the people we're to feel sorry for in this story. This is explicitly about people who traded things like job security and short term income for a long-term payout. People desperate for any job (short term income) are somewhat the opposite (and unlikely to have the financial resources to have made this trade).

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
    90. Re:Mafia by CountBrass · · Score: 1

      Heinlein isn't a prophet and his words shouldn't be taken as gospel.

      The US is 'an armed society' and my impression is that it is anything but a 'polite society'.

      --
      Bad analogies are like waxing a monkey with a rainbow.
    91. Re:Mafia by zachie · · Score: 2

      You don't seem to value people's life much. I'd take dealing with a few jerks now and then over innocents dying. And additionally I don't think jerks deserve death. Actually thinking jerks deserve to die and take collateral damage with them is pretty jerkish. Let's have a duel? :-)

    92. Re:Mafia by bjourne · · Score: 1

      That's what Zynga is counting on. Of the people who are asked to give back their shares, maybe say 5% have the legal recourse and saved capital to go through legal action. But most of them won't because they don't have the resources for it. So, 5% will get what they were promised, maybe even more in statuatory damages, but 95% of them wont so it so it will still be a huge net win for Zynga.

    93. Re:Mafia by JockTroll · · Score: 0

      The US is 'an armed society' and my impression is that it is anything but a 'polite society'.

      Switzerland is both an armed society and a polite society. Of course, they also have better education and a militia army system, which means people actually know how their firearms work.

      --
      Geeks are so full of shit that "beating the crap out of them" takes a whole new meaning.
    94. Re:Mafia by L4t3r4lu5 · · Score: 1

      Somewhere in Azeroth, Thrall is facepalming.

      I facepalm every time I rescue that dude from the dungeon in Old HIllsbrad. Hey there, Mr SuperAwesomeShaman, why not smack that horse upside the rump and have it get a shift on? I'm tired of waiting for your slow ass!

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    95. Re:Mafia by vipw · · Score: 1

      More details please. Do you have a reason for not naming the company and managers involved?

    96. Re:Mafia by Anonymous Coward · · Score: 0

      legal counsel

    97. Re:Mafia by ArsenneLupin · · Score: 2

      I mean, I know that I would never, ever consider working for Zynga after this news,

      But did you ever consider working for them before this news? Did anybody here on Slashdot ever consider working for them?

      See? They didn't really lose anything here which wasn't already beyond their reach in the first place.

      Now about the people who would consider working for them. Chances are, they don't read much geek news, or else they would have been aware of Zynga's other accounts of poor ethics. Even if previously this wasn't directed against employees (but merely against customers), it was not that big of a stretch of imagination that eventually Zynga would change the focus of their douchiness.

      So, those people who were unaware of past transgression will also be unaware of this incident as soon as it will have left the front page of the papers.

      So, no loss for Zynga...

    98. Re:Mafia by ArsenneLupin · · Score: 1

      Mafia wars...

    99. Re:Mafia by TFAFalcon · · Score: 1

      Thrall wasn't a shaman back there. And it was probably the first time he'd even ridden a horse :).

    100. Re:Mafia by Entrope · · Score: 2

      There is a simple explanation for why the US is not a polite society: The particularly impolite people in the US are the same ones who want to confiscate all the weapons.

    101. Re:Mafia by L4t3r4lu5 · · Score: 1

      Let me guess... Argent Dawn?

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    102. Re:Mafia by Anonymous Coward · · Score: 0

      It's almost like dealing with small children, sometimes the closest way to get a lesson to their brain is through their butt.

      I'm certain that sodomy is not the way to teach children a lesson.

      Anyway, civil behaviour achieved through the threat of application of violence doesn't sound that good to me. But then again many people aren't reasonable or civilised.

    103. Re:Mafia by Karellen · · Score: 3, Insightful

      Yup, I guess that's why many European societies which have much tighter gun controls and lower levels of firearm ownership than the US are so much less polite.

      Oh, wait...

      --
      Why doesn't the gene pool have a life guard?
    104. Re:Mafia by SwedishPenguin · · Score: 4, Insightful

      Every time an article like this is posted on Slashdot, I keep wondering why the hell people don't organize.. It seems to me that American IT-workers are in sore need of a proper union. Behaviour like that would lead to a world of hurt for the company over here, yet Americans just lie down and take it like some kind of slaves.

    105. Re:Mafia by Sleepy · · Score: 1

      Actually, yes, Zynga has "alleged" connections to Russian organized crime (who, to their credit, recognize that corporate games are more profitable than street ones, and less likely to result in actual jail time).

      This is known, but I just had to point it out as so many replies didn't get your jest.

    106. Re:Mafia by Anonymous Coward · · Score: 0

      "I wouldn't. I'd tell my lawyer to prepare his largest vault and stand my ground. There are times when suing is the right course of action."

      Not if you ever want to have another job again. No company will hire you after they find out you sued your former employer.

    107. Re:Mafia by Larryish · · Score: 1

      Trust can exist only up to the point at which trust is questioned.

      It then becomes an exercise in risk management.

    108. Re:Mafia by Lehk228 · · Score: 1

      and yet so many techies scoff at unionization for IT, Software and Web developers.

      --
      Snowden and Manning are heroes.
    109. Re:Mafia by Jimmy+King · · Score: 1

      Interesting. Now I wish I had some of my old contracts around. I'm sure I've been employed at least one place (and I think several) where discussion of pay was, at least on paper, something you could be fired for. It was unenforced and people talked about their pay and no one was ever fired for it, but I'm certain that on paper it said you're not allowed to. I don't really care that much as it was unenforced, I'm mostly just curious as to if I'm remembering right or not.

    110. Re:Mafia by Lehk228 · · Score: 1

      i played that pile of shit they called a game (civony after it got it's new name) and it was even more blatant about being nothing buta cash mill. at first they just offered to let you buy out of the wait times for buildings like any other facebook cash mill^H^H^H^H^HGame but after you get to tier 10 or so you have to buy stuff to build your facilities to higher level, or wait for extremely rare item drops.

      and as this is a multiplayer combat game you really had to buy or you would get colonized by players who had bought in. i stopped logging in instead, because it was a shit game anyways not worth the buck or two to keep playing.

      contrast this with ogame previously and world of tanks currently, which i fairly often pay in both to get the useful but not over powered or at all mandatory upgrades and because i do want to support "free" games that i enjoy

      --
      Snowden and Manning are heroes.
    111. Re:Mafia by Anonymous Coward · · Score: 0

      I don't see how this is all that different from the way most large American corporations operate these days.

      Then you are an idiot.

    112. Re:Mafia by Anonymous Coward · · Score: 0

      Sadly, no, noone had the balls to do that.

    113. Re:Mafia by Hatta · · Score: 2

      How do you avoid getting screwed over the old fashioned way.

      By being the guy who screws other people over. This is the only way in America.

      --
      Give me Classic Slashdot or give me death!
    114. Re:Mafia by Hatta · · Score: 1

      The effect of doing so, especially in a way as public as this, will severely affect company's ability to attract talent.

      Zynga has talent?

      --
      Give me Classic Slashdot or give me death!
    115. Re:Mafia by TheRaven64 · · Score: 1

      Shares are issued in different categories. The founders typically have one category that is not diluted. In broad terms, one category may be shares that add up to 51% of the value of the company, the second category add up to 49%. When new shares are issued, they are from the second category. Most companies have some protection like this set up so that they can issue more shares without diluting the founders' share. If they're not willing to give you shares from the same category (or one that is similarly protected, so it's only diluted by shares issued to new employees, not by ones issued to the general public) then it's probably better to ask for money.

      --
      I am TheRaven on Soylent News
    116. Re:Mafia by Anonymus · · Score: 1

      Yeah, that was a major plot point in The Social Network. You'd think Zynga of all companies would have seen that movie and known the proper way to handle this exact situation.

    117. Re:Mafia by roman_mir · · Score: 0

      I don't think so. There should be no tie between your employer and your retirement plan and between your government and your retirement, that's the only way to have a retirement.

    118. Re:Mafia by flaming+error · · Score: 1

      My brother was lead plaintiff in a class-action law suit against a large defense contractor, and won. A simple google search of his name brings the case up, right on top.

      And he's had no trouble at all getting new work. I thought he'd be screwed, but it turns out lots of employers appreciate talent and honesty, and aren't necessarily bothered by somebody standing their ground.

    119. Re:Mafia by Anonymous Coward · · Score: 0

      That probably doesn't apply to software developers, for instance. They are classified as supervisors which is also why they don't get overtime.

    120. Re:Mafia by CraftyJack · · Score: 1

      *the crowd goes wild*

    121. Re:Mafia by Anonymous Coward · · Score: 0

      No the proper coarse of action is to beat up your boss. Nothing else could settle the problem more quickly and more firmly. In this world, there are forces of evil and forces of goodness. The forces of evil( FOE) have subsumed the legal system of the united states of america in their program of the global conquest of evil. The court system at one time was designed so that the physically weak would not be subjected to the whims of the strong. Now the FOE (who seem to be physically weak) use the Court systems and the all corrupting power of money to bring about evil. No loner is it proper to use violence to regulate bullies and other FOEs, who are being assholes. You must use the court system like a civilized human being. The court system is controlled and paid for by the FOEs. The FOE's know this and use it to their advantage.

      I am not saying might always makes right. It is just that our society has swung soo far in the direction of pussyhood that a little physical violence would solve a lot of problems that we are facing now.

    122. Re:Mafia by N0Man74 · · Score: 1

      Yes, many companies take this very seriously.

      I worked for a company where a manager had offered a sum of money to a lower positioned, financially struggling, single-mother in exchange for sleeping with him. She went to HR to complain. He was allowed to step down from his position voluntarily, and was given a new higher position job at a sister company.

      Another employee was outright fired for discussing pay.

      So, yes, apparently some companies take discussing payroll far more seriously than even sexual harassment.

    123. Re:Mafia by vanye · · Score: 1

      Employees don't get to write their own contract - no start-up would/should allow that. You want to be using the money you have for productive purposes (hiring engineers) not paying lawyers. Since stock ownership is governed by the board, anything out of "normal" would require their approval.

      Be honest with yourself - what is your financial risk profile ? Are you prepared to gamble 5%, 10% or 20%.

      If you're not prepared to gamble anything and will only accept "full market value" work for a large company.

      richard.

    124. Re:Mafia by LanMan04 · · Score: 3, Interesting

      Eh, Barring employees from talking about wages is a violation of The national labor relations act. I'd cry tears of joy if I had it on paper someone was firing me for that reason, because winning the resulting lawsuit would be basically guaranteed.

      TRUE! But, do be aware that the NLRB has ruled that companies can restrict/prohibit said discussions in work areas and during work time. But in the bathroom, lunchroom, or any other "non-work" area (not sure if it also has to be during non-work hours in said places), you're good to go.

      --
      With the first link, the chain is forged.
    125. Re:Mafia by dotfile · · Score: 1

      I'd rather be screwed over by my employer -- who is paying me, regardless of the amount of screwage, and from whom I can separate at any time I decide the screwing isn't worth the compensation -- than a union, from whom I'd get a screwing over and PAY for it.

      How appropriate that a comment about unions should appear with a subject line of "Mafia".

    126. Re:Mafia by TheLink · · Score: 1

      No company will hire you after they find out you sued your former employer.

      Not true. Likely even more so if former employer is Zynga ;).

      --
    127. Re:Mafia by SwedishPenguin · · Score: 1

      Yeah yeah, standard willful American ignorance of anything that can be used to actually improve your working conditions...
      You know in the rest of the developed world (Japan excluded), regularly working 60-hour weeks is NOT tolerated, and neither is arbitrary termination, two weeks (if that) of combined paid vacation and sick leave, no paid parental leave, etc. Ever consider why? It's because we joined together to fight for laws to protect workers from exploitation, we joined together to STOP poor working conditions. You guys did the same a long time ago, but it was met with violence and propaganda from the establishment, and the movement was essentially crushed.

    128. Re:Mafia by bracher · · Score: 1

      Don't take a job based on shares. Just assume they're going to make them worthless in the long run. Yeah, it makes it harder to join a startup early on, but it's the funded startups you want to work for, anyway.

      exactly! at my first startup we referred to them as "lottery tickets" and just assumed they'd be worthless. if the salary they offer you isn't sufficient, then the worthless pieces of paper don't help things along...

    129. Re:Mafia by reidconti · · Score: 1

      Because we like being paid for our skills, not for the skills of the average drone. Unionization is great if you're lazy and don't like working.

    130. Re:Mafia by EEmarty · · Score: 1

      The goal of a company isn't to make employees rich, or even to treat them fairly. The goal of a company is to make money for the shareholders. The directors have a legal obligation to do what is in the best interest of the shareholders and often this is at odds with the interest of the employees, customers, or the general population. Laws are used to protect this second set of people from the decisions of companies. I think it's dangerous to assume that a company should voluntarily act ethically or treat employees fairly because this leads to the conclusion that laws and regulation aren't necessary. In this case, if it isn't already illegal to require employees to give up previous compensation to keep their jobs, it clearly should be illegal. Citizens should push legislators to create this law. One of the current problems in the US is that corporations themselves have enormous political influence which obviously makes it difficult for legislators to protect citizens from unethical or unfair behavior like this.

    131. Re:Mafia by s73v3r · · Score: 1

      No, this has to be utter bullshit. Situations like this are exactly what suing your employer is supposed to be for. For another employer to look negatively on that is absolutely childish, and those employers are complete scumbags.

    132. Re:Mafia by tompaulco · · Score: 1

      Given that they're in California, which is a very employee-friendly state (one of the few I believe where non-competes are unenforceable)
      Non-competes are not enforceable anywhere. An employer is not allowed to tell someone that they can't work in their desired profession. That is completely unconstitutional.
      Once your employment contract ends, the non-compete ends with it. If they prefer the non-compete to remain in full force and effect then they need to compensate you for the full term of the non-compete agreement.

      --
      If you are not allowed to question your government then the government has answered your question.
    133. Re:Mafia by s73v3r · · Score: 1

      I absolutely do. Regardless of what you think a retirement should be, something like this is pure shit, and it trying to weasel out of a deal. It should be illegal, full stop, and those who do it should be stripped of all income, property, and sent to rot in a jail cell for the rest of their lives.

    134. Re:Mafia by s73v3r · · Score: 1

      Blah blah blah, irrational anti-union sentiment.

    135. Re:Mafia by Just+Some+Guy · · Score: 3, Interesting

      Ha! Yeah! A union would fix that right up!

      Back in the real world, my mom was a union employee of a railroad. At the high point of her career, she had the job title of Wire Chief and was basically in charge of their communications system (which included a phone switch in her office - not a PBX, but a 5ESS). When she'd worked there approximately forever, they closed her office and gave her a choice of moving to Minnesota or the local railyards. She hates winter and decided to stay. Well, her new role was sucky and only got suckier as she grew closer to retirement. She had a lot of seniority with the company but almost no seniority at the railyards, the yard employees resented an office worker occupying one of "their" jobs, and management gave her boss orders to make her quit before she retired.

      At first, her main job duty was to stand next to the tracks and write down the numbers off the sides of train cars as they rolled past. By the end, they had her mopping the outhouses the train crews used. She made a game of the the situation:

      Boss: So, how's the outhouse cleaning going for you? (with a nasty smile)
      Mom: Oh, I love it! I hated being stuck in that old office and now I get to spend time outside!
      Boss: [seethe]

      But back to the original point: her union didn't do jack to help her. Nothing. Nada. She was a paying member for nearly three decades and the "proper" union provided her no assistance whatsoever.

      And that's why I have nothing but disgust for American-style unions. Maybe they're legitimate and useful where you live, but as far as I can tell the ones we have are utterly useless.

      --
      Dewey, what part of this looks like authorities should be involved?
    136. Re:Mafia by s73v3r · · Score: 1

      Bull fucking shit. More worthless anti-union propaganda.

    137. Re:Mafia by s73v3r · · Score: 1

      Believe it or not, among talented software engineers, the job market is still quite good.

    138. Re:Mafia by s73v3r · · Score: 1

      It is promised compensation. And this isn't the employee deciding to quit, this is the company being an absolute shitbag.

      Furthermore, Zynga is in California. Non-Competes aren't worth the paper they're printed on.

    139. Re:Mafia by s73v3r · · Score: 1

      You've literally declared your inability to distinguish between anyone who isn't completely trustworthy, unable to even think of defrauding their employees.

      Given the opportunity, ALL employers would be willing to do this shit. Keeping that kind of attitude in mind when dealing with any of them is the only way to possibly not get fucked over.

    140. Re:Mafia by s73v3r · · Score: 1

      . It's a startup. It's not supposed to behave like a large corporation, or nobody would work there.

      No, but fucking the employees isn't something that they are expected to do either.

    141. Re:Mafia by tompaulco · · Score: 1

      I worked for a company that had promised that our hard work would pay off. Employees worked nights and weekends to make the company a success. It sold for $300 million. The founders walked away with close to $100 million each. The employees got nothing, except the right to reinterview for the job they already had, and since that time, most of the employees who put in all that time have been laid off by the new company.

      --
      If you are not allowed to question your government then the government has answered your question.
    142. Re:Mafia by sjames · · Score: 1

      Not in the sense that Heinlein meant. The odds that a person you see on the street is armed are fairly low. The fact that many of them have a gun back at home on the nightstand means nothing in this context.

    143. Re:Mafia by Grishnakh · · Score: 1

      Non-competes are not enforceable anywhere. An employer is not allowed to tell someone that they can't work in their desired profession. That is completely unconstitutional.
      Once your employment contract ends, the non-compete ends with it.

      Wrong. Non-competes are enforceable in most states. If you disagree, go sign such an agreement, work at that place for a while, then try quitting, going to work for their competition (located in the same state or even city), and be sure to tell your old employer about it and see if you don't get slapped with a lawsuit (which you'll lose).

      The constitution doesn't say anything about employment that I remember, and it certainly does allow private parties to enter into contracts with each other, so non-competes are just a part of regular contract law. They're unfair because employers have much more power than individual employees, but that doesn't make them illegal (except in states like California where they've been made illegal or unenforceable either by statute or by court precedent). It'd be nice if our sociopathic leaders made them illegal in all states, but that simply isn't the case, no matter how much you may wish it to be.

    144. Re:Mafia by Xphile101361 · · Score: 2

      But back to the original point: her union didn't do jack to help her. Nothing. Nada. She was a paying member for nearly three decades and the "proper" union provided her no assistance whatsoever.

      And that's why I have nothing but disgust for American-style unions. Maybe they're legitimate and useful where you live, but as far as I can tell the ones we have are utterly useless.

      You sure? It sounds like she would have been fired from that job long ago if the union hadn't been there to make sure she wasn't. Yeah, she got stuck with shit work (literally), but she was able to keep her job and hit retirement.

    145. Re:Mafia by Anonymous Coward · · Score: 0

      It seems like every "civilization" that removes or reduces the threat of violent consequence to members for their actions, doesn't last long. They go down in flames of revolution, political corruption, and general anarchy. They look much like we do today.

      Which civilizations are you thinking of?

      British Empire -- went down in flames of powerlessness but still with plenty of violent consequences to members
      Roman Empire -- went down under barbarian onslaught but still with plenty of violent consequences to members
      Byzantine Empire -- went down under muslim invasion but still with plenty of violent consequences to members
      Persian Empire -- ditto
      Egyptian Empire -- ditto

      In fact, I don't have any idea which civilizations you're thinking of as examples.

    146. Re:Mafia by roman_mir · · Score: 1

      If there is a contract - then it's up to contract court to decide on all of these things, but that's just a small problem in itself, a symptom of the large problem, which is that government should not be dictating to the market how the pensions must be structured and who is responsible for what.

      People shouldn't be forced into pension plans, into insurance plans, into health care plans, etc.etc. A person should be able to buy his own insurance, invest into his own pension all on his own without government standing there with power to corrupt the process and to sell the power and money to the real owners - those who buy that power every day.

      If there is fraud in this case (or in any case), it's up to court to decide the details.

      But the large problem is not this case or any case, it's the fundamental question - why are people forced into pension plans and why are businesses forced to provide them by government?

      AFAIC anything government mandates upon companies is wrong and must be stopped.

    147. Re:Mafia by dotfile · · Score: 1

      Wah fucking wah. Standard socialist bullshit. If you don't like your working conditions, get a different job. We live in a free country, I don't know about you. This guy's biggest problem is that his company ids trying to short him on some stock options, not work him to death. It's California, for fuck's sake. Get a grip. There's a reason American tech workers aren't unionized, and it's NOT because Big Management is fighting tooth and nail to keep unions out. It's because the VAST majority of us want absolutely no part of a union, ever. I don't believe I have ever once talked to a programmer, engineer, analyst, DBA, SA, network cable monkey or repair tech that seriously wanted any part of a union, and I've been working in this business for over three decades.

    148. Re:Mafia by Anonymous Coward · · Score: 0

      She was a paying member for nearly three decades and the "proper" union provided her no assistance whatsoever.

      She worked with one company for 30 years. It sounds like the union did a hell of a lot for her that you aren't giving credit. What is the average job life now? A few years?

    149. Re:Mafia by tompaulco · · Score: 1

      The constitution doesn't say anything about employment that I remember, and it certainly does allow private parties to enter into contracts with each other, so non-competes are just a part of regular contract law. They're unfair because employers have much more power than individual employees, but that doesn't make them illegal (except in states like California where they've been made illegal or unenforceable either by statute or by court precedent). It'd be nice if our sociopathic leaders made them illegal in all states, but that simply isn't the case, no matter how much you may wish it to be.
      What does the non-compete agreement offer in terms of compensation or other renumeration for the employee? How can a contract benefit only one party? I will happily no work in my chosen profession for another party as long as my ex-employer continues to pay me not to do so. They will have to pay me more than they were paying when I was working for them because if I don't practice my trade for a year, I will have a hard time getting another job in that trade.

      --
      If you are not allowed to question your government then the government has answered your question.
    150. Re:Mafia by Anonymous Coward · · Score: 0

      The union did exactly what they are set up to do, which is enrich the union bosses and reps.

      Ho, you thought they were there to defend the little guy? How quaint.

    151. Re:Mafia by Grishnakh · · Score: 1

      What does the non-compete agreement offer in terms of compensation or other renumeration for the employee? How can a contract benefit only one party?

      A higher salary? Employment? It's not like they're forcing you to work there. I understand what you're saying about "consideration", but these contracts have been upheld in court.

      I will happily no work in my chosen profession for another party as long as my ex-employer continues to pay me not to do so. They will have to pay me more than they were paying when I was working for them because if I don't practice my trade for a year, I will have a hard time getting another job in that trade.

      Yes, I agree that it sucks, and that's why California (home to Silicon Valley and the strongest tech economy in the nation if not the world) has made them unenforceable. But that's only one state, in most of the rest they absolutely are. If you want to try to challenge them in court, go ahead, but I don't think you'll get very far; they've been upheld in most other states for decades now.

    152. Re:Mafia by Pence128 · · Score: 1
      --
      404: sig not found.
    153. Re:Mafia by s73v3r · · Score: 1

      Wow, way to completely and utterly disregard the point.

      But the large problem is not this case or any case, it's the fundamental question - why are people forced into pension plans and why are businesses forced to provide them by government?

      Really? Name any private employers that actually offer a pension plan. They'll be in the absolute, tiny, tiny minority. Most employees got fucked over and were given "401k plans", which are absolute shit compared to pensions. However, to your point, they are entirely voluntary. You are not required to contribute to your 401k, although you miss out on company matching if you don't.

    154. Re:Mafia by tompaulco · · Score: 1

      A higher salary? Employment?
      Those are facets of the employment contract and can not be considered to be compensation for the purposes of a non-compete clause after you are no longer employed.
      When I looked into enforcability of non-compete agreements, they have to meet three criteria:
      The employer must prove that it has a legitimate business interest to protect by restricting its employees' right to compete against it;
      The restriction on the employee's right to compete must be no greater than that necessary to protect the employer's business interest; and
      The covenant not to compete must be supported by consideration, meaning that the employee received something in exchange for it.
      Most of the non-competes that I have seen meet zero of these three requirements.

      --
      If you are not allowed to question your government then the government has answered your question.
    155. Re:Mafia by hot+soldering+iron · · Score: 1

      I do not think that word means what you think it means.

      --
      When you want something built, come see me. If you want correct grammar and spelling, get a F*ing liberal arts student.
    156. Re:Mafia by hot+soldering+iron · · Score: 1

      I'm defining "members" as people that actually have influence and leadership in the society. The "normal folks" aren't members, they're subjects. They are always subject to violent repercussions, oppression, and general abuse. The courts for the commoners are always much more vicious than they are for the lords.

      --
      When you want something built, come see me. If you want correct grammar and spelling, get a F*ing liberal arts student.
    157. Re:Mafia by Anonymous Coward · · Score: 0

      But in the bathroom, lunchroom, or any other "non-work" area (not sure if it also has to be during non-work hours in said places), you're good to go.

      Wait, so you're saying you don't take your laptop with you to continue working while in the bathroom?! And to think, I thought people slacked off at my job...

    158. Re:Mafia by Grishnakh · · Score: 1

      Well again, good luck challenging one in court, because that's what it looks like you're headed for. You'd do well to find some examples of other people who've challenged their contracts and won. Of course, at what cost? Lawyers aren't cheap, especially if you go into litigation. The corporation has lawyers on staff for things like this, so litigation is mostly free for them (their legal fees are fixed and a sunk cost), whether they win or lose; not so for you. You can go on and on about laws and rights all you want, but you have to prove your case in court, and that costs a lot of money that you're unlikely to get back (courts rarely award legal fees), as this is not a "loser pays" country, so big corporations have all the advantage here.

    159. Re:Mafia by ifiwereasculptor · · Score: 1

      They probably have lots, since they seem to have been saving so much.

    160. Re:Mafia by bar-agent · · Score: 1

      I don't think jerks deserve death.

      But keep in mind, the only way a jerk would face death is if someone else hated what they did enough so that they would themselves risk death in challenging them to a duel. With that in mind, you can see how it wouldn't be the wholesale culling that fiction would lead you to believe.

      This is why duels were mostly resolved with a settlement rather that going to trial, so to speak.

      Still, it makes a person have second thoughts before taking some action that might push someone else over that edge.

      --
      i'd hit it so hard, if you pulled me out you'd be the king of britain [bash.org]
    161. Re:Mafia by Anonymous Coward · · Score: 0

      You're stupid enough to run an os (Linux) that has had its sourcecode repository breached recently in kernel.org as well as linux.com, 4 CA's, and mysql.com which all run Linux. So much for your habits. They didn't do you any good.

    162. Re:Mafia by Anonymous Coward · · Score: 0

      No Mark Pincus is....
      Should the IPO roll out as expected in
      other public disclosures posts do expect legal actions in the
      context of a breach of contract. At this point Mark Pincus
      may have a clear expectation of value and he is taking
      that value from folks that he has penned contracts with.

      I am not an lawyer but if I was to return shares... I would ask my laywer
      if I could pen "Under protest and under threat of loss of employment"
      X_________signed_______ Dated ___/____/____
      on the document that returns them....

    163. Re:Mafia by bmo · · Score: 1

      You are a disgusting waste of oxygen.

      I have sympathy for the mentally ill, mostly. I found it sad when Toomalf/flamoot went over the edge with drugs and paranoia. I found his work with critterding interesting.

      You, on the other hand, do nothing creative with your insanity.

      Get stuffed.

      --
      BMO

    164. Re:Mafia by Anonymous Coward · · Score: 0

      ur just a waste troll

    165. Re:Mafia by znerk · · Score: 1

      In other, words, don't bother threatening to sue, yourself.

      Have your lawyer do it.

      --
      This work is licensed under a Creative Commons Attribution 3.0 Unported License.
  3. I would rather.... by joocemann · · Score: 5, Insightful

    .... be fired and get rich (and maybe an employer that respects me), than to be forced to sell the valuable stocks that I personally contributed success to.

    In truth, those with pre-IPO stocks are the foundation of the success for the company; what we are seeing is absolute disrespect to those who are responsible for the success.

    1. Re:I would rather.... by Swanktastic · · Score: 5, Insightful

      From a legal perspective, it seems stupid to approach people and ask them to to surrender their shares. Firing them straight up if they are truly "MIA" as Pincus claims would be justifiable. There's nothing wrong with letting go an employee who doesn't meet expectations. Asking them to surrender their shares, THEN firing them makes your motivations clear.

      This simply confirms that Zynga is a company with no morals.

    2. Re:I would rather.... by Billly+Gates · · Score: 5, Insightful

      What the CEO who had to work up to 6 whole hours a day in his lavish office with those 2 hour lunches and games of golf shouldn't take the credit. It was his and the upper managements ideas that created the company. Just like all the bank CEOs who work really hard producing things of value we take for granted. They need to be paid for such a hard life and creating all sorts of innovation. Thoughts magically create products and they call come from managers, directors, and CEOs only! Get with the program and when I say work you say minimum wage, you are costing the shareholders money!

    3. Re:I would rather.... by dlcarrol · · Score: 4, Informative

      That's a false dichotomy. The choices are (1) give (some of) the UNvested shares back and don't get rich, or (2) get fired, forfeit all of the UNvested shares, and don't get rich. I hope the IPO punishes them for this.

    4. Re:I would rather.... by Anonymous Coward · · Score: 0

      They can still dilute your shares to oblivion - you don't really have a say at the board at what they do with your stocks.

    5. Re:I would rather.... by Dunbal · · Score: 1

      I think that said "valuable stock" may turn out to be less valuable than you thought - especially with this attitude. These are not the hallmarks of a large, successful company.

      --
      Seven puppies were harmed during the making of this post.
    6. Re:I would rather.... by joocemann · · Score: 2

      No. AFAIK if they don't give ownership of the shares back, they get to see their company ownership grow, even if they are fired.

    7. Re:I would rather.... by Bucky24 · · Score: 1

      In TFA, they stated that employees were told if they were fired they would lose all stocks. So they either could give up their stock and keep their job, or lose both.

      --
      All the world's a CPU, and all the men and women merely AI agents
    8. Re:I would rather.... by Bucky24 · · Score: 2

      "Mr. Pincus told this employee he had too many unvested shares and had to return a portion of them or Mr. Pincus would fire him. If so, he would lose all of the unvested stock."

      From TFA.

      --
      All the world's a CPU, and all the men and women merely AI agents
    9. Re:I would rather.... by Billly+Gates · · Score: 4, Interesting

      I am no lawyer but this sounds like a break in promissary estople. Basically, if someone gives you advice and you make a decision based on that advice and it causes financial harm on yourself you can sue to recover the losses.

      They were promised IPO shares and to top it off they acted on it by buying them and taking employment. Now they get to lose them after they took their advice and financial harm because I doubt they would buy them back + they could have worked for someone else who *would* give them pre-IPO.

      To top if off you are fired that is a financial loss too, but you were fired because you took a promise of IPOs which you were denied.

      A lawyer would be drooling on this. CEOs are assholes and are known to do these things and sleep well at night and not care. The CEO could devalue everyone elses share to $0, but keep his high of course using accounting tricks. That is legal and a better thing to do if you want to be evil and steal. I hate to break it but no company has morals and only look at you as mathmatical functions that bring in money. Your sole existence is to make someone richer in corporation and they only care about money. I hate laywers but here this is good as it would force employers to fullfil their bargins they made when the CEO was a little guy and needed help.

    10. Re:I would rather.... by LateArthurDent · · Score: 5, Interesting

      No. AFAIK if they don't give ownership of the shares back, they get to see their company ownership grow, even if they are fired.

      That's not how that works. Contracts with unvested stocks always involve, "you must work with the company until such and such date" clauses. They get fired, they lose the stocks.

      So yeah, sue the bastards.

    11. Re:I would rather.... by khallow · · Score: 4, Interesting

      In TFA, they stated that employees were told if they were fired they would lose all stocks.

      I think we'd have to see how that played out in court. But I think if I promise you something as part of a job contract and then threaten to fire you instead of meeting that contract, then you'd have a fine advantage when it comes to suing my pants off.

      Also, I wonder if they expected this to become public? Somehow I doubt it.

    12. Re:I would rather.... by nomadic · · Score: 2

      What they probably did is figured they'd demand this, get sued, and once the lawsuit got rolling settle for a lesser amount, and walk away with a net profit even considering legal fees even if they didn't get as much back as they initially demanded. What I'm curious about is the vesting requirement; do the employees vest if they're fired?

    13. Re:I would rather.... by Billly+Gates · · Score: 1

      I just thought of something?

      If Zynga gave more than 10% of its shares to employees they can gang up together and fire the CEO too! I would certainly be fired for this if I worked there but I would get everyone together and form a mob outside the CEO's office. Explain that if they fire me and everyone else he will be fired too and we will replace him with a new CEO.

      Lets see how he likes having his job threatened by blackmail? A deal is a deal

    14. Re:I would rather.... by Anonymous Coward · · Score: 2, Insightful

      As a current CEO, I totally agree. We put literally entire minutes into our work every day. How dare an early employee who took a very low-paid position at a start-up with zero job security complain when they can't get their dirty little fingers on my, ahem, their promised stocks. Do they honestly believe that contracts are there to be honoured? After all, they've got a much better portfolio to help them get a better job so they should be grateful that they made me and my friends rich, ahem, built the company. And don't worry - when I begin my next venture, I'll remember their performance so they can work for a salary of up to $45k. Oh yes, and a firm promise of stock (hehehehehehe).

      Serious point now- I wonder if Zynga are going back to their investors to demand those shares back? Something tells me they wouldn't dare.

    15. Re:I would rather.... by jeremymiles · · Score: 4, Interesting

      I believe they don't vest if they're fired. So your choice as offered is (a) be fired and lose your stocks, or (b) lose your stocks.

      --
      GENERATION 26: The first time you see this, copy it into your sig on any forum and add 1 to the generation.
    16. Re:I would rather.... by whoever57 · · Score: 0

      In TFA, they stated that employees were told if they were fired they would lose all stocks.

      No, both articles clearly refer to losing only unvested stock, even if fired.

      --
      The real "Libtards" are the Libertarians!
    17. Re:I would rather.... by shadowfaxcrx · · Score: 2

      Your premise is basically correct, but the use of the word "advice" was somewhat improper. It's if someone promises you something - for example, if you call a charity and promise to give them $10,000, and they then hire a contractor to build them a new food shelf building, and you then refuse to give them the money, they can sue you under p.e. to force you to follow through with your promise.

      Just giving someone advice ("hey, you should think about building a castle in this swamp!") does not mean that someone could then sue you when the castle burns down, falls over, and then sinks.

      --
      "I disagree with you" does not equal "flamebait."
    18. Re:I would rather.... by Billly+Gates · · Score: 2

      I wonder if the employee shares are greater than 50%? If so they can fire teh CEO outright and replace him.

      If it is just 10% they can sit on the board and convince other investors to gang up and fire the CEO as well. A threat of a lawsuit might do the trick.

    19. Re:I would rather.... by Anonymous Coward · · Score: 0

      According to TFA the stocks in question haven't vested yet. If they leave the company they lose them.

      If it's true, I imagine that many people will be suing for improper dismissal. I would certainly be distancing myself if I worked at that company.

      I found it interesting that they referenced the "Google Chef". I hadn't realized the Charlie Ayers walked off with so much money, but the guy was the executive chef at Google (not a cook). Back in the day, Google lunches were famous. This was a big drawing card for attracting talent in the early days of building up Google. Possibly his contribution was worth the compensation.

      In any case, why you would be offering stock options to employees that are "Missing In Action" is beyond me. Sounds like they had an amazingly poorly thought out compensation system.

    20. Re:I would rather.... by Bucky24 · · Score: 1

      Oh I agree completely. I'm just pointing out that this is what they told their employees.

      --
      All the world's a CPU, and all the men and women merely AI agents
    21. Re:I would rather.... by Bucky24 · · Score: 1

      I stand corrected. What is the difference between unvested stock and normal stock, if I may ask?

      --
      All the world's a CPU, and all the men and women merely AI agents
    22. Re:I would rather.... by DdJ · · Score: 1

      Contracts with unvested stocks always involve, "you must work with the company until such and such date" clauses.

      It's not that simple. If this were always true, I wouldn't own a seven bedroom house today.

      (That said, I've no idea what the Zynga contracts are like.)

    23. Re:I would rather.... by Anonymous Coward · · Score: 1

      I hope the IPO punishes them for this.

      Yeah, I always look to the stock market for the righting of moral wrongs.

    24. Re:I would rather.... by whoever57 · · Score: 1

      What is the difference between unvested stock and normal stock, if I may ask?

      Vested stock is stock that you keep if you leave the company. Unvested stock is stock that you lose if you leave.

      Usually, on joining a startup company, employees will get a grant of stock (or more likely stock options), with a vesting schedule. Commonly, nothing vests until the first anniversary of starting work at the company, when 25% of the granted stock vest. Then the rest will vest over the remaining 3 years on a monthly basis.

      --
      The real "Libtards" are the Libertarians!
    25. Re:I would rather.... by Bucky24 · · Score: 1

      Ah ok. So it would make sense that they lose it if they are fired.

      --
      All the world's a CPU, and all the men and women merely AI agents
    26. Re:I would rather.... by JoeMerchant · · Score: 5, Insightful

      Also, the cited reason "we want to avoid a Google Chef situation" - what is wrong with a Chef making $20M off of working at a high-risk low reward company at the early stages? What did Mark Zuckerburg, or Bill Gates for that matter, do that justifies the magnitude of their fortunes? It's all a lottery, Zynga should be happy for their winners, even the ones who don't look like they deserve it. If those lucky people had all turned their backs on Zynga in the early days, Zynga would probably have failed hard - the promise was to share in potential IPO spoils, keep the promise or have your CEO report to the State Penitentiary for fraud.

      the firm's executives reportedly justified their strategy by saying it was best for the company. With the unvested shares, the executives believed they could attract more top talent with the promise of stock.

      What's best for the company is to conduct business within the law, meet your contractual obligations. If I would start a plumbing business, hire a bunch of journeymen plumbers for stock, then claw back the unvested shares from the low performers because it's "better for the business" to make those shares available to new plumbers who might perform better, what would the judge say to that?

      Also, what lowlife idiot would sign up for a promise of stock from a company that has already done this to former employees?

    27. Re:I would rather.... by Mr.+Underbridge · · Score: 1

      Interesting for sure, but here the motivation is simple. The company doesn't want him to have so many shares. The only way for him to not have so many shares is to either give them back, or incur clauses that allow the company to take them. The only clause that lets them take them back is if he doesn't work there. Therefore, he must be made to not work there.

    28. Re:I would rather.... by JoeMerchant · · Score: 3, Insightful

      Mr. Pincus' employees need to start wearing voice recorders to meetings.

    29. Re:I would rather.... by Anonymous Coward · · Score: 1

      Contracts with unvested stocks always involve, "you must work with the company until such and such date" clauses.

      Yup. I was laid off a couple months ago and lost a chunk of unvested stock (approx 1000+ shares of fortune 500 company). It sucks, but the 6 months severance more than made up for it.

    30. Re:I would rather.... by XaXXon · · Score: 1

      I was reading more about this and from the other perspective, it sounded like underperforming employees were given the option of getting fired (what ever other company does all the time) and lose their options, or move to another, lower position and have their compensation adjusted to match their new position.

      In an at-will employment, you are not entitled to your options/shares until they vest. There is no employment contract.

      I think a lot of employees think they have rights that they don't have.

    31. Re:I would rather.... by JoeMerchant · · Score: 4, Insightful

      These were not the hallmarks of a large, successful company in the 1950s, 60s or 70s.

      There, fixed that for ya. Ever since the "greed is good," "buy the company cheap, break it up into pieces and sell it for a profit," trickle down '80s, corporate morals have been on greased skids to hell. I hope Occupy succeeds in turning this around, if they don't it will only be a more painful correction for everybody when it eventually does come.

    32. Re:I would rather.... by tysonedwards · · Score: 1

      Unvested shares are shares which are essentially promised shares. If the terms of issuance are obeyed (e.g.: remain with the company for 1 year, you get 25% of the shares, 2 years, 50%... etc.) than the shares become "vested shares", and are entirely yours.

      "Normal stock" comes down to the classification of the stock. Typically, there are multiple pools of shares. Common Stock, Preferred Stock, etc. This is what allows for businesses to massively dilute one class without impacting another.

      --
      Thirty four characters live here.
    33. Re:I would rather.... by JoeMerchant · · Score: 1

      Oh I agree completely. I'm just pointing out that this is what they told their employees.

      Allegedly told their employees, the defense will argue.

    34. Re:I would rather.... by 3dr · · Score: 3, Insightful

      It's the unvested shares, so percentage held doesn't enter into it.

    35. Re:I would rather.... by shutdown+-p+now · · Score: 1

      According to TFA, not all of those shares were voting - I'd imagine that the proportion is just enough that employees can't really take over.

    36. Re:I would rather.... by D+H+NG · · Score: 1

      If you get fired, you get none of the unvested stocks, so it's a choice of all or nothing.

    37. Re:I would rather.... by shutdown+-p+now · · Score: 2, Informative

      California is not an at-will state - its law recognizes "implied covenant of good faith and fair dealing" in the relationship between employee and employer, which TFA specifically refers to as what is the grounds for the lawsuits from employees here. I can certainly agree that promising unvested stock, and then at a later point threatening to fire, not for cause, but just because you have that earlier promise, and forcing you to rescind it that way, is neither fair nor in good faith. If this guy has a problem with performance of those employees, then why doesn't he fire them on those grounds?

    38. Re:I would rather.... by Anonymous Coward · · Score: 4, Informative

      As an owner of a corporation and one who cares about his employees, I can tell you that you paint a broad brush. "I hate to break it but no company has morals and only look at you as mathmatical functions that bring in money. Your sole existence is to make someone richer in corporation and they only care about money."

      Maybe I'm bad at business but I pay my employees well over the going rate and *gasp* care about them. There could come a point where, mathematically, I would have to let some go in order for the company to continue in bad times but I would take no delight in it. At some point the goal is to keep a business running unless you think that it would be better if everyone should get fired if you go bankrupt.

    39. Re:I would rather.... by cbhacking · · Score: 2

      Granted that this is Zynga and just generally assumed to be run by people with the morality of pond scum, I can't help but wonder if there's some term hidden in the employment contract that allows them to make demands like this? If not, it seems like a pretty blatant case of wrongful termination if they actually fire anybody, and it should be possible to sue for compensation, including the shares you didn't get to vest.

      In any case, no matter how it comes out this pretty well cements the question of "under any circumstances, should you consider employment at Zynga?" as "No."

      --
      There's no place I could be, since I've found Serenity...
    40. Re:I would rather.... by Anonymous Coward · · Score: 1

      Depends why they're fired. If they are fired so their stocks won't vest, that's a breach of the implied covenant of good faith and fair dealing, which is implied in every contract. The stocks vest.

    41. Re:I would rather.... by Firehed · · Score: 4, Informative

      Disclaimer: IANAL. You lose unvested shares if you're fired or if you quit. You can still buy vested shares at the original strike price for up to, I believe, thirty days after termination.

      Whether you'd want to after getting screwed so royally is another matter, but chances are there's still money to be made (recovered may be a better term) if you keep emotion out of it and dump them just after the IPO, especially if you got in early enough and have the options at a favorable strike price. In fact you might not need to wait until they go public; there are plenty of secondary markets for privately-held stocks. The company probably has the right of first refusal in that case, but you still get paid the same amount; they just get to buy the shares back at the agreed-upon price instead of you doing business with the original buyer. This is in effect what Zynga's trying to do, but without actually paying to get the stock back.

      --
      How are sites slashdotted when nobody reads TFAs?
    42. Re:I would rather.... by Anonymous Coward · · Score: 3, Insightful

      No company has morals because no company thinks. People have morals.

      While being a completely different situation (nothing even boarder line illegal), this reminds me of the story of stock options at early Apple. As the story goes, stock options were issued to the Steves and Steve W thought that the employees deserved a share. Steve J didn't want to give up his so Steve W ended up distributing stock options to the employees solely from his own personal allotment.

      There are people who work in large companies (and even found them) who aren't dicks. If we want to live in a world where moral actions are rewarded, we need to start choosing our suppliers based on something more than price. This is up to us as a society. If we foster a culture where these kinds of things matter, things will change. In the end, *we* are the ones rewarding these companies for their actions. We can choose not to if we want.

      Maybe people have a hard time drawing the lines from despicable behavior and price at the checkout line. If that's the case, it's probably a good idea to start making those lines more visible. The previous story about the Yes Men was interesting in that regard.

    43. Re:I would rather.... by demachina · · Score: 1

      Last I remember Pincus was planning on making the class of shares he owns worth 10X or 20X more votes than everyone else's shares when they IPO. This was so he could sell a large number of shares but would retain majority control of the company. If the SEC allowed it absolutely no other share holders could touch him in any way and he would still have absolute control of the company.

      Yes he is a total scumbag, this is not news, anyone who started working for him within the last few years should have been expecting to be screwed and should have had their head examined for taking a job there in the first place.

      --
      @de_machina
    44. Re:I would rather.... by Nursie · · Score: 1

      This sort of bullshit is exactly why Europeans think the US is barking mad.

      This sort of move would be flat out illegal, without any question, in most of europe.

    45. Re:I would rather.... by Anonymous Coward · · Score: 1

      "I hope Occupy succeeds in turning this around"

      I pray to the flying spaghetti monster that you aren't serious.

    46. Re:I would rather.... by Anonymous Coward · · Score: 0

      Remind me not to buy their stock. Ever.
      Actually, I'll remember.

    47. Re:I would rather.... by C10H14N2 · · Score: 1

      California is most definitely an at-will employment state.

      http://www.leginfo.ca.gov/cgi-bin/displaycode?section=lab&group=02001-03000&file=2920-2929

    48. Re:I would rather.... by rgmoore · · Score: 1

      According to the article, this is about employees with unvested shares. That means they don't actually own the shares yet; they're only promised the shares if they meet certain conditions, usually continued employment. If they're at will employees, Zynga has the right to fire them at any time for any reason, including firing them to keep their options from vesting. That may be sleazy and underhanded, and it's likely to cause them serious loss of reputation (more of a problem for the VCs, who will have to deal with other startups, than Zynga), but it's technically legal. Demanding the return of the options is just giving the employees a choice: get fired and lose your options because they haven't vested or keep your job and give up your options as the price of continued employment. Again, it's sleazy enough to make pond scum resent your comparison to Zynga management, but it's probably legal.

      --

      There's no point in questioning authority if you aren't going to listen to the answers.

    49. Re:I would rather.... by shutdown+-p+now · · Score: 1

      The wonders of a common law system mean that it's not just what's written in the laws that's important, it's also how the courts have ruled in the past. In case of California, "fair and in good faith" is implicit in any employment contract, and so a terminated employee can argue that his termination was wrongful on those grounds, depending on the circumstances. This covers it in more detail; specifically:

      Courts that have recognized good-faith-and-fair-dealing exceptions have found either covenants implied in fact or covenants implied in law. Covenants implied in fact have been found in "objective manifestations," including repeated promotions and pay increases, that might reasonably give an employee cause to believe that he or she has job security and will be treated fairly (Dare v. Montana Petroleum Marketing, 687 P.2d 1015 [Mont. 1984]; Kerr v. Gibson's Products Co., 733 P.2d 1292 [Mont. 1987]).

      A few jurisdictions have recognized implied-in-law covenants of good faith and fair dealing. California courts have ruled that every employment contract carries with it an implied covenant that neither party will impede the other from receiving the benefits of the agreement. In deciding whether such a covenant is to be inferred, a court looks at such factors as whether the company properly followed its stated personnel policies, the length of the person's employment, any job security assurances that may have been made, a presence or lack of prior criticism of performance, and basic notions of fairness.

      In Khanna v. Microdata Corp., 170 Cal. App. 3d 250, 215 Cal. Rptr. 860 (1985), for example, a California court of appeals ruled that a company violated an implied covenant when it fired a leading salesman who had brought suit against the company for unpaid commissions. The court found that a breach of an implied-in-law covenant is established whenever an employer engages in a bad-faith action outside a contract and attempts to frustrate an employee's enjoyment of her or his contract rights.

    50. Re:I would rather.... by Anonymous Coward · · Score: 0

      The employees in IT have surely learned to carry at least a voice recording device at all times already, no? I had one on me all the time while I was working for our corporate overlords. This has saved my job twice and secured promotions in more than two occasions. These days you can buy a miniature, full HD video camera for less than a cheap lunch.

    51. Re:I would rather.... by Dahamma · · Score: 1

      IANAL, but I have taken a class in the laws of hiring and management. Your point is exactly what the class teaches - CA (where Zynga is located) is an at will state, which means you can leave employment or be fired for no reason at all. The problem comes in when a company gives a reason, and that reason is not VERY solidly justified.

      Firing an employee for being unproductive (with some documentation to prove it) is usually ok. Firing an employee for not returning stock contractually provided to them (even if you later claim the real reason was lack of productivity) is pretty much a guaranteed wrongful termination lawsuit, with VERY good chance of success...

    52. Re:I would rather.... by Anonymous Coward · · Score: 0

      If that "p.e." you mention is promissory estoppel, I'm not sure it counts here. The relevant bit is eSTOPpel. It can stop a party from asserting certain rights that they have promised they would not assert and the other party has relied on that. I don't believe it can force a party to follow through on a promise they made since that is not involving some pre-existing right.

      In other words, if I promise you $100 and you go and spend it, PE doesn't mean I have to hand it over. If I promise not to sue you for copyright infringement (a pre-existing right) for using my code, and you create a MegaCorp using that code, I can be estopped from suing you. Or, more precisely, I can't be stopped from suing but you can use PE as a defence.

      Don't get me wrong, there *may* be an equitable course of action that would force me to hand over that $100 but I don't think PE is the right one.

    53. Re:I would rather.... by Anonymous Coward · · Score: 0

      The concepts of "at-will employment" and "fair and good faith dealing" are orthogonal. What you are arguing is akin to saying that no state is "at-will" because they all have laws against racial/sexual/etc discrimination in the workplace too.

    54. Re:I would rather.... by Anonymous Coward · · Score: 0

      A promise is not the same as a legally binding contract, AFAIK.

    55. Re:I would rather.... by Anonymous Coward · · Score: 0

      Hey...Get Those Stocks Certified as Legal..Tie Them Up with a Broker...Get a Lawyer...and Sue For Misrepresentation of Funds...That is a Federal Offense...Those Cheating Lying Bastards...Get the News Media on This Right Now

    56. Re:I would rather.... by phantomfive · · Score: 3, Informative

      The article on WSJ.com (Here) consulted with several lawyers, who generally felt that since this has never been tried before, it is hard to know whether it would stand up in court. I'm going to assume Zynga consulted with their own lawyers before trying this trick.

      Apparently the reason they used this trick instead of diluting the shares is because they didn't want to dilute all the shares (well, maybe they did that too), they wanted to get stock back from a few employees (it seems mainly executives, actually) who were 'non-contributors.'

      Still seems like a lame move. When the money flows like it does from an IPO, let it flow to everyone. When you have a billion dollars coming in, paying the lowly janitor a million isn't going to hurt much. Be generous.

      --
      "First they came for the slanderers and i said nothing."
    57. Re:I would rather.... by slamb · · Score: 1

      Mr. Pincus' employees need to start wearing voice recorders to meetings.

      Bad advice. That's illegal in California without the consent of all parties. I know of a guy who got fired (ostensibly) for that reason. (It was really because he was a jerk who didn't do any work, but the HR people were too risk-adverse to fire him until this convenient excuse came along.) I think Mr. Pincus's employees should carefully avoid giving him "cause" to fire them right now.

    58. Re:I would rather.... by thegarbz · · Score: 1

      Not sure how it is in America, but where I live we have unfair dismissal laws. If you're found in breach of the laws you're usually fined, forced to re-instate the employee under their original contract, and pay compensation to the employee all at once.

      Do you guys have something similar? Because if so option (a) is looking mighty fine.

    59. Re:I would rather.... by mvdwege · · Score: 1

      ...get everyone together...

      You're talking union here. Good fucking luck with that with your brainwashed compatriots.

      Mart

      --
      "I know I will be modded down for this": where's the option '-1, Asking for it'?
    60. Re:I would rather.... by Anonymous Coward · · Score: 0

      our sole existence is to make someone richer in corporation and they only care about money. I hate laywers but here this is good as it would force employers to fullfil their bargins they made when the CEO was a little guy and needed help.

      Not all lawyers, just the rich ones. Sadly, the good lawyers are hard to distinguish from the rich ones, but the distinction is there.

    61. Re:I would rather.... by Chrisq · · Score: 1

      Your premise is basically correct, but the use of the word "advice" was somewhat improper. It's if someone promises you something - for example, if you call a charity and promise to give them $10,000, and they then hire a contractor to build them a new food shelf building, and you then refuse to give them the money, they can sue you under p.e. to force you to follow through with your promise.

      Just giving someone advice ("hey, you should think about building a castle in this swamp!") does not mean that someone could then sue you when the castle burns down, falls over, and then sinks.

      Of course if you are a professional builder and paid to advise then you could be used if you had not shown "reasonable care" in giving the advice.

    62. Re:I would rather.... by shentino · · Score: 1

      Indeed.

      Since being fired will cause the unvested stock options to vanish anyway, the sole purpose of this move seems to be Zynga pulling rank and letting its workers know who is boss.

    63. Re:I would rather.... by shentino · · Score: 1

      It does if the person who gave you that advice is an arsonist...

    64. Re:I would rather.... by Entrope · · Score: 1

      Normal stock is shares you own. Vested options let you buy a share of stock at a particular price. Unvested options will let you buy a share at some point in the future, assuming certain conditions occur (for these employee incentive plans, usually the options vest after a certain period of time if you remain employed by the company).

    65. Re:I would rather.... by TFAFalcon · · Score: 1

      Did these executives also give back their stocks and reduce their pay to 0? That would also be best for the company.

    66. Re:I would rather.... by mwvdlee · · Score: 1

      Did mr. Pincus want to purchase the shares back at current rates or was he just trying to steal from his own employees?

      --
      Slashdot social media options: AIM, ICQ, Yahoo, Jabber and Mobile Text. Why no MySpace?
    67. Re:I would rather.... by Anonymous Coward · · Score: 0

      What you are describing is closer to contract law than a change in employment law. At will employment has to do with not obligating an employer to retain an employee after his services are no longer necessary (and not obligating an employee to provide services he doesn't want to provide). At-will says you can quit or be fired for a good reason, a bad reason or no reason, but not a WRONG reason. This case isn't the company just exercising their right to not employ someone, but that they are attempting to fire people to get out of some contract they agreed to.

      It is sort of like when you have a loan on a car- you can sell the car if you want, but you still have to pay off the loan.

    68. Re:I would rather.... by nosferatu1001 · · Score: 1

      or c) be fired and sue for being fired without cause, AND get the value of the bad faith stocks - after all theyve shown why theyre firing you, in writing!

    69. Re:I would rather.... by Lehk228 · · Score: 1

      i doubt it will be all that painful, beheading is a rather painless way to go compared to alternatives, and a well designed guillotine does not make mistakes

      --
      Snowden and Manning are heroes.
    70. Re:I would rather.... by Anonymous Coward · · Score: 0

      I hope the IPO punishes them for this.

      Which means those same employees are punished. Better yet, I hope the legal system harshly punishes them for this.

    71. Re:I would rather.... by Raenex · · Score: 1

      The employees in IT have surely learned to carry at least a voice recording device at all times already, no?

      Unless you're talking about getting permission in advance to record conversations, which I doubt you are, that would be illegal in many states. A quick Google search shows this to be the case for California, where Zynga is located:

      http://www.newmediarights.org/page/field_guide_audio_and_video_recordings#Audio

      "The general rule is that it is a crime in California to intercept or eavesdrop upon any confidential communication, including a telephone call or wire communication, without the consent of all parties. (California Penal Code 631, 632). A conversation is not limited to just two or three people. For example, an audience member listening to a speaker is a party. If the information is confidential or you are not a party, you cannot secretly record.The amount of consent required depends on your state."

    72. Re:I would rather.... by ErikZ · · Score: 1

      It has nothing to do with being a lowlife idiot. It's a trust issue.

      And if you don't trust them, then set up your employment contract to reflect that.

      --
      Democrats or Republicans. They are both taking us to the same place and they are not afraid of us anymore.
    73. Re:I would rather.... by Anonymous Coward · · Score: 0

      They built the systems, that's what they did.

      However, if you give away stock, tough shit. I'd make them fire me and would sue the heck out of them. Discovery would be a lot of fun.

      Zynga is a POS company anyway though.

    74. Re:I would rather.... by shadowfaxcrx · · Score: 1

      Definition of promissory estoppel:

      "In the law of contracts, the doctrine that provides that if a party changes his or her position substantially either by acting or forbearing from acting in reliance upon a gratuitous promise, then that party can enforce the promise although the essential elements of a contract are not present."

      So in other words, if I promise you $100, and based on that promise you hire someone to do work for your organization, and then I change my position substantially by refusing to give you $100, you can enforce the promise.

      --
      "I disagree with you" does not equal "flamebait."
    75. Re:I would rather.... by Anonymous Coward · · Score: 0

      "..no company has morals..." Careful there. Corporate America may have no morals, but one does not have to be an asshole to run a business. I run a business and I'm not an asshole. I get to decide if my business is all about maximizing profit, or if it's about a mix of goals like making cool furniture, growing the local arts scene, making sure Mexican artisans have a future... Sure I want to make money, and I have a pretty sound strategy for doing so, but it's based on old fashioned business concepts like providing quality work for a reasonable price, with good support. OccupyBusiness

    76. Re:I would rather.... by s73v3r · · Score: 1

      No, there is no way this is legal. At least, there is absolutely no reason why this should be legal. They are given a "choice", but it's not really much of a choice. Lose your stock, or lose your job and then your stock. To call it a choice is an insult.

    77. Re:I would rather.... by s73v3r · · Score: 1

      No. You are trying to justify this shitbag action, and it's quite despicable.

      And perhaps employees should start demanding those rights.

    78. Re:I would rather.... by khallow · · Score: 1

      It probably also depends on how many employees knew about this. If a dozen employees step forward with the same story, that's not going to look good for Zygna no matter how their defense team argues. But if it's just one person. Eh.

      The fact that the Wall Street Journal decided to publish the story indicates to me that there's probably at least three people in the know (most new sources don't publish unless they get confirmation from at least two sources, something this delicate for the WSJ probably means they had more than that).

    79. Re:I would rather.... by Rich0 · · Score: 1

      No IPO is going to punish a company for screwing employees.

      Read the article - the CEO says, well, sure it is a lousy deal for the employees but it is what is best for the company.

      Duh - getting people to work for years and then not paying them for that work is ALWAYS in the interest of the company as long as they can get away with it. Shareholders don't care about employees - they care about EPS, and when you revoke shares you increase EPS.

    80. Re:I would rather.... by Anonymous Coward · · Score: 0

      "With the unvested shares, the executives believed they could attract more top talent with the promise of stock."

      What kind of fools would join the company on the 'promise of stock' after they see that the company stole the stock from earlier employees?

      If they want to offer stock to new employees they would be better off just issuing more shares.

      The real reason probably is that the founders want more of the stock for themselves.

    81. Re:I would rather.... by Billly+Gates · · Score: 1

      No we do not as we can be fired for any reason at all. ... however the promisory estopple prevents someone from being dishonest and causing financial harm to another via a promise or just being an ass to someone else who gets screwed. You would have to go this route and my guess is they will pay the fine but it will be cheaper to pay terminated employees half as much as the pre-IPO shares with a lawsuit then the full price. The workers with no financial resources will be willing to accept that from nothing and the bad guys win. Disgusting!

  4. Lesson? by AlienIntelligence · · Score: 1

    Wow, let that be a lesson to anyone taking the promise
    of stock and options when a company is willing to "give
    just about anything" to succeed.

    -AI

    --
    For me, it is far better to grasp the Universe as it really is than to persist in delusion
    1. Re:Lesson? by Surt · · Score: 2

      The better lesson is probably not to go to work for people who are well known douche-bags. Seriously, if you couldn't see this kind of thing coming when you went to work for Zynga, you really weren't paying attention.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
    2. Re:Lesson? by Bucky24 · · Score: 1

      We know that now. Do you think the first people who went to work for them realized it?

      --
      All the world's a CPU, and all the men and women merely AI agents
    3. Re:Lesson? by Surt · · Score: 1

      They certainly could have, they had bad history before Zynga, and Google had indeed been invented at the time.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
    4. Re:Lesson? by Billly+Gates · · Score: 1

      Every place I worked is filled with douche-bags. Only 1 employer was not and that was a school district whose job was to educate children and not make money. Everyone company is there to make money only.

      Still a promise was made and if it were the other way around Zynga would sue and cry foul.

    5. Re:Lesson? by Surt · · Score: 1

      Zynga has douche-bags on a level that makes national news. Prior to current events, even.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
    6. Re:Lesson? by izomiac · · Score: 2
      FTFA:

      Most of those aware of Zynga's demands for the return of stock said the effort was designed to replenish the pool of shares that could be awarded to attract new talent.

      IMHO, Zynga has a lesson to learn. I highly doubt unvested shares are going to attract very much talent in the future for their company. Or at least among prospects who do the slightest bit of research and have a modicum of common sense.

    7. Re:Lesson? by Anonymous Coward · · Score: 0

      For which of those two have you worked? Google is hardly the Disney Land that people think it is.

    8. Re:Lesson? by Surt · · Score: 1

      Sorry, to clarify, I was not suggesting google was a magical place to work. I was suggesting that google, the search engine, could have been used by any potential zynga employee to find out what a bad idea it would be to go to work there.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
    9. Re:Lesson? by Anonymous Coward · · Score: 0

      The people that created farmville? Is this a troll?

    10. Re:Lesson? by Steauengeglase · · Score: 1

      I don't think they even care about that. It sounds like a pump and dump more than anything else.

  5. Fearing the chef. by Anonymous Coward · · Score: 5, Insightful

    Fearing a Google Chef situation?

    What... a competent professional working at the company over a long period of time demonstrating a high level of skill, overseeing, directing and training many others, and earning the respect of his colleagues?

    Is this kind of thing bad now?

    1. Re:Fearing the chef. by ddxexex · · Score: 1

      Is this kind of thing bad now?

      Only when you want that money...

    2. Re:Fearing the chef. by Anonymous Coward · · Score: 0

      What... a competent professional working at the company over a long period of time demonstrating a high level of skill, overseeing, directing and training many others, and earning the respect of his colleagues? Is this kind of thing bad now?

      Yes. You cost too much

    3. Re:Fearing the chef. by L4t3r4lu5 · · Score: 1

      Yes. You're supposed to flog your employees into working 80 / 90 hour weeks for months on end, vainly attempting to meet impossible deadlines imposed by vapid PHB's with a blood tie to the CEO, causing them to burn out after 3 years, at which point you hire another slew of meat to fill your chairs. Rinse, repeat.

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    4. Re:Fearing the chef. by Anonymous Coward · · Score: 0

      Its not a bad thing. But at the same time not worth $26 million. Chefs around the world do this kind of thing for a pittance. Only if he opted to forgo a salary or take a massive pay cut would this kind of windfall be justified.

    5. Re:Fearing the chef. by Anonymous Coward · · Score: 0

      The don't want a mere chef to be worth $20m through stock options.

    6. Re:Fearing the chef. by Anonymous Coward · · Score: 0

      Yes, in America it really is that bad now. Getting rich by being the one person out of 10000 with the same idea who got attention, lucky, or whatever is just fine. Contributing to that person's success through hard work and competence, then expecting to share in what you helped build (even if that's part of your employment deal), well that's JUST WRONG. Unless, of course, you are already wealthy through inheritance in which case the world owes you fame and success for some reason.

    7. Re:Fearing the chef. by s73v3r · · Score: 1

      Oh bull fucking shit. Who the fuck are you to say whether a windfall is justified?

    8. Re:Fearing the chef. by Anonymous Coward · · Score: 0

      Fearing a Google Chef situation?

      I thought Google was in the search engine business not a chef boy are dee...

  6. Illegal? But surely still lose lose? by Fluffeh · · Score: 5, Interesting

    I can't imagine how an action like this can be legal in terms of anyone wanting to take it to court - surely the employee would win hands down, but I can't also see how it would be beneficial in the long run. Srely if you took your employer to court like this (and assuming you won) and went back to work - surely the culture there after that must be very antagonistic. Wouldn't the employer then be looking for any excuse and going through all the hoops to have that person leave the company anyhow.

    The only way I can imagine to pursue this would be to take them to court, win (I assume quite easily) and then start looking for another job as the workplace has become hostile - which sort of leads to where they are going in the first place... "Give it back or you are fired" OR "Ha, I won, now I need to find other work...". It just seems to be a half dozen here and six there.

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    1. Re:Illegal? But surely still lose lose? by Anonymous Coward · · Score: 5, Insightful

      You take them to court and as part of the settlement/compensation you get vesting of your unvested options because you cannot return to a hostile work environment.

    2. Re:Illegal? But surely still lose lose? by Anonymous Coward · · Score: 0

      Yes, but good luck getting another job afterward. Most companies won't hire somebody that sued their previous employer, regardless of the reason.

    3. Re:Illegal? But surely still lose lose? by Surt · · Score: 1

      I assume Zynga has no plan to follow through. That they hope to win concessions by intimidation, and never bring it to a firing action.

      --
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    4. Re:Illegal? But surely still lose lose? by Anonymous Coward · · Score: 3, Insightful

      Have they gone public yet? If not, it strikes me that having outstanding legal suits against them would likely taint their public offering, to the extent that whoever is underwriting their IPO would force them (zynga) to clear up the matter. SInce time would not be on zynga's side, they would have to settle on favorable terms for the ex-employees. There would be a lot of attempts at intimidation, but any employee with the balls to avoid folding would come out OK.

    5. Re:Illegal? But surely still lose lose? by Surt · · Score: 2

      To answer your question, no, they are indeed in the predicament you describe.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
    6. Re:Illegal? But surely still lose lose? by Anubis+IV · · Score: 2

      The problem is that they're asking for the unvested stock back, which means that the only way they'll ever see the rewards tied to those stocks is if they stick around long enough for them to vest. In other words, looking for alternative employment after court proceedings would still leave you in the same horrible position. Really, IANAL, but I don't see any obvious way out for these employees. Pretty much every scenario results in them losing those stocks.

    7. Re:Illegal? But surely still lose lose? by cbhacking · · Score: 2

      Hell, if they actually fire you you may have a case for wrongful termination (CA is an at-will state, meaning they don't have to have a reason to fire you, but if they give one that violates a contractual agreement anyhow...). When determining compensation for a wrongful termination suit, you would certainly consider not just salary but also the value of unvested shares.

      Sure, you probably have to answer "Yes" to "Have you ever been terminated for cause from a prior employer?" questions. On the other hand, you've got a lot of maney to live on while you find a less-douchy company to work for, and court papers to point to when a prospecting employer asks *why* you were fired.

      --
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    8. Re:Illegal? But surely still lose lose? by kimvette · · Score: 2

      Sure, you probably have to answer "Yes" to "Have you ever been terminated for cause from a prior employer?" questions.

      No, that would not be "terminated for cause."

      --
      The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
    9. Re:Illegal? But surely still lose lose? by superwiz · · Score: 3, Interesting

      "hostile work envrionment" is too wishy-wooshy. File 2 separate suites. One for bridge of employment agreement and one to stop the IPO (because the result of the 1st suit is material to the filing of the IPO). They'll settle to keep the IPO going.

      --
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    10. Re:Illegal? But surely still lose lose? by Anonymous Coward · · Score: 0

      This A-C is Right!!!!...Respectively Submitted A-C Washington State

    11. Re:Illegal? But surely still lose lose? by mwvdlee · · Score: 1

      Then again, if these employees are indeed like the Google Chef, they really won't have to worry about employment after receiving their millions of dollars.

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    12. Re:Illegal? But surely still lose lose? by Raenex · · Score: 1

      surely the employee would win hands down, but I can't also see how it would be beneficial in the long run. Srely if you took your employer to court like this (and assuming you won) and went back to work - surely the culture there after that must be very antagonistic.

      If the stock options are worth millions in the long run, then surely it is worth it.

      And stop calling me Shirley.

    13. Re:Illegal? But surely still lose lose? by s73v3r · · Score: 1

      Wouldn't the employer then be looking for any excuse and going through all the hoops to have that person leave the company anyhow.

      Maybe, but they'd have to be extremely careful, as just about any action like that could be taken as retaliation, and grounds for another lawsuit.

    14. Re:Illegal? But surely still lose lose? by s73v3r · · Score: 1

      No, this is bullshit.

    15. Re:Illegal? But surely still lose lose? by s73v3r · · Score: 1

      I would imagine it's quite likely to not only get a fat settlement out of this, but that they would also get vesting of their current options as part of the settlement.

    16. Re:Illegal? But surely still lose lose? by Anonymous Coward · · Score: 0

      It happens all the time. This idiot is going to get his dick handed to him in court.

    17. Re:Illegal? But surely still lose lose? by mabhatter654 · · Score: 1

      That's why lawyers in these cases work for a measly 40% of the settlement rather than cash up front...

  7. What the fuck man D: by atari2600a · · Score: 2

    Why not simply water down the stocks like they did with Facebook's Chief "Financial" Officer?

  8. Not following the Google Chef reference by alostpacket · · Score: 2

    Were they really upset about that guy? Sounded like he did top-notch work from the Wikipedia references.

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    1. Re:Not following the Google Chef reference by mjperson · · Score: 1

      What is this "Google Chef" situation that this story seems to pull up everywhere it is posted. Everything I read about the actual Google chef seems to indicate he was a great guy who did amazing things during the formation of the Google. What's the "situation"?

    2. Re:Not following the Google Chef reference by Anonymous Coward · · Score: 0

      Any C-level executive will look like a damn fool in other C-level executive's eyes if they let a lowly peasant like a chef walk away with millions of dollars; had they been worth their "C" those millions should have ended up in the C-level executive's own pockets, hence the disdain.

      The issue with Google is that someone probable misread "Chef" for "Chief" when the stock was handed out (notice that in "Chief" there's only 1 letter difference with "Thief").

    3. Re:Not following the Google Chef reference by Anonymous Coward · · Score: 5, Interesting

      I think it is class prejudice in the modern world. I don't think there is a problem with the chef in Google, but other executives look at a working class man who risked his career with a start-up and received a very large reward and think that should not be right. To them, working people should stay in their class where they belong and not become multi-millionaires regardless of the risk and hard work they took or did.

      It sounds to me like those people who give lottery tickets as a gift and then sue the recipient for a share when the tickets turned out to be big winners - because they say they did not mean to give so much to the recipient.

      Truly bizarre and illogical in my view.

    4. Re:Not following the Google Chef reference by Anonymous Coward · · Score: 0

      whatever, the Chef made 20 but the top level management made 200+, not including page, brin, or schmidt

    5. Re:Not following the Google Chef reference by JustNiz · · Score: 1

      I heard Google employees could ask for any food in their cafe. The Google Chef must be the guy that cooks it all. No wonder he's a great guy putting up with every nerd's random dining requirements.
       

    6. Re:Not following the Google Chef reference by Anonymous Coward · · Score: 0

      They seem to be implying that being "just the chef" is not a meaningful enough contribution to the success of the company to justify the return on share value. But by most accounts the benefits of working at Google are an important part of retaining good talent, and awesome food is a very important part of those benefits. Hmm...

      Charlie is a good guy, I'm pretty sure he left on good terms. I suspect any animosity about what he got comes from people who think cooking good food - not to mention managing 10 cafes and keeping up high food quality - is easy. This article is the first I've heard of the "Google Chef" phenomenon, so now I'm curious if this is really a "thing" or what.

    7. Re:Not following the Google Chef reference by Destoo · · Score: 4, Informative

      One of the first financial press conferences before (after?) the google IPO was by their CFO.. Chielf Food Officer, back in February 2005.
      Google was proud of announcing the number of eggs they were cooking each day for their employees. Wall Street was pissed by their lack of respect.

      They had a formal presentation by their chef but not their chief financial officer,” said Mark S. Mahaney, an analyst with American Technology Research. “I have never been to an investor day where the C.F.O. didn’t speak.”
      Indeed, Google’s top chef, Charlie Ayers, spoke to the assembled analysts and investors about the lunch he had prepared, featuring entrees like grilled pork tenderloin. The chief financial officer, George Reyes, moderated the presentation and answered a few questions, but did not give a formal talk.

      http://www.nytimes.com/2005/02/10/technology/10google.html?ex=1266123600&en=60d19019bb842d20&ei=5088&partner=rssnyt

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    8. Re:Not following the Google Chef reference by Anonymous Coward · · Score: 1

      Let's be honest about this, Charlie (the chef in question) was and probably is still a jerk. I love the guy but that's because we had a mutual respect situation.

      As for the reference, it's unlikely they're saying something bad about Charlie but they're indicating that in an ideal world you'd be compensated equal to your merit and not your hire date. Early Google was made up of a lot of people busting their asses but if you busted your ass first, you hit a bigger jackpot. Position and merit came into play somewhere either in last 2003 or early 2004. Charlie busted ass and got rich off Google but the fact that he walked away richer than people with bigger degrees and more _technical_ impact did piss a few people off.

    9. Re:Not following the Google Chef reference by Anonymous Coward · · Score: 0

      I guess people think cooking is worth less than whatever executives do.

    10. Re:Not following the Google Chef reference by shutdown+-p+now · · Score: 3, Interesting

      in an ideal world you'd be compensated equal to your merit and not your hire date.

      That's how it worked out in practice if you account for the risk factor. Those people who came to work at Google early on were working for a startup, with all the risks that entailed. It's a risky proposition, considering how many startups fail for each one that succeeds (and the employees of those startups then have to look for a new job, which they may not be able to easily find - and even if they do, may well incur additional relocation expenses etc). But anyone can gamble that way, there's no significant barrier of entry here. So I don't see why I should envy someone who took that gamble when I did not - we had equal chances in that regard, I chose to play safe for a guaranteed small reward, he chose to play risky for a non-guaranteed large reward. Fair's fair.

    11. Re:Not following the Google Chef reference by Anonymous Coward · · Score: 0

      *Google* wasn't upset, no. Their cafe is still called "Charlie's" I believe. But Zynga might be upset at a similar situation? Since chefs don't deserve to get lucky or something. I dunno.

    12. Re:Not following the Google Chef reference by PhilHibbs · · Score: 1

      He got some money. Clearly the Zynga management believe that all money belongs to them, so the Google Chef story where the canteen staff make millions in stock options is anathema to them.

    13. Re:Not following the Google Chef reference by mwvdlee · · Score: 2

      I don't know about the quality of his work, and it's largely irrelevant; investors rarely provide any useful labour to the companies they invest in either.
      The guy did take a gamble by working at a start-up and the gamble paid off.
      If you take big risks, you may get a big reward or no reward at all; both are equally well-deserved.
      The fact that Google recognized the risk he took and didn't try to weasel out of a promise like zynga only demonstrates that Google respects the risk he took.

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    14. Re:Not following the Google Chef reference by Anonymous Coward · · Score: 0

      Funded startups in the bay area, such as Google when Chef Ayers joined, pay salaries similar to established companies that will RIF you as soon as things turn sour. Only the investors and founders who work for equity only are taking risks.

    15. Re:Not following the Google Chef reference by s73v3r · · Score: 1

      Investors and financial people really hate Google, but they love Google's money.

  9. Dangerous precedent by klui · · Score: 5, Insightful

    Next thing you know, their employees would be asked to pay back portions of their salaries that management thought are undeserved.

    1. Re:Dangerous precedent by Beryllium+Sphere(tm) · · Score: 4, Funny

      Imagine boards of directors giving ultimatums like this to underperforming CEOs.

    2. Re:Dangerous precedent by artor3 · · Score: 1

      Since the CEO and his buddies usually run the board of directors, this seems unlikely.

  10. So they want to have employees with a grudge? by qbzzt · · Score: 2

    They're going to make some of their employees very disgruntled. Their company depends on keeping a bunch of servers running. Am I the only one who sees the potential reliability problem here?

    --
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    1. Re:So they want to have employees with a grudge? by Anonymous Coward · · Score: 0

      They're going to make some of their employees very disgruntled. Their company depends on keeping a bunch of servers running. Am I the only one who sees the potential reliability problem here?

      If these disgruntled employees are smart, they won't go there. What's happening to them sucks, but they don't want to be the bad guys when they go to court to get what their employer promised them. Their legal position is strongest if they are the only ones who were wronged.

      Sabotage of your employer's assets is not just illegal, it's breathtakingly stupid and unprofessional.

    2. Re:So they want to have employees with a grudge? by cbhacking · · Score: 1

      What employees? Say "No, it says right here on this piece of paper with your signature on it that I get these shares." When you go home that night, look up local wrongful-termination law and legal counsel, and start updating your CV. If they actually fire you, great - sic the lawyers on them, demand a couple years worth of salary and the current value of those shares (or else just a grant of that many shares, though I wonder how much this will affect their stock price...), and go vacation somewhere nice for a month after laughing your way from the courthouse to the bank.

      --
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    3. Re:So they want to have employees with a grudge? by Anonymous Coward · · Score: 0

      I wouldn't worry about existing employees. I'd worry about finding willing employees after a mass walkout. There are plenty of better employers available for developers. Even at the peak of the "economic downturn" unemployment was 3% in that specific profession.

    4. Re:So they want to have employees with a grudge? by Anonymous Coward · · Score: 0

      Potential reliability problem?? I take it you never played Mafia Wars - Their "engineering staff" and "network staff" certainly don't do much. In the last two years, Mafia Wars has spiraled into a disaster that has an uptime where everything actually works somewhere around never. I finally got fed up and stopped playing, which is good because my credit card started to thank me. Screwing over the employees will only compound the problem if (when) they decide their network people need to cough up their options...and judging by the number of complaints by my Facebook friends who still continue to (struggle) play complain about downtime, glitches, et al. will probably be soon.

      They engineer Internet heroin and mask it as a game...Pincus makes Larry Ellison look like a saint.

    5. Re:So they want to have employees with a grudge? by znerk · · Score: 1

      Have we forgotten a certain sysadmin so quickly?

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  11. Different in this case. by www.sorehands.com · · Score: 4, Funny

    Given that it is Zynga the employer may hire you based on that fact that you did sue them.

  12. Dont judge without reading TFA carefully by deecha · · Score: 3, Informative

    From TFA, the small minority of employees asked to return the stocks are executives, not engineers, architects or the creative folk.... Most executives don't deserve what they get paid in USA. Most of them just lunch off of the productivity and manipulate for their personal gain. There's a term for that in the nature. It is called a parasite.

    He is doing the right thing. So let's not be quick in judging him. ok ?

    1. Re:Dont judge without reading TFA carefully by khallow · · Score: 4, Insightful

      He is doing the right thing. So let's not be quick in judging him. ok ?

      Then he shouldn't have promised that to them. It's classic renege on a contract. Doesn't matter if they're parasitic executives or not.

    2. Re:Dont judge without reading TFA carefully by bstender · · Score: 5, Insightful

      So let's not be quick in judging him. ok ?

      a quick googling of "zynga ethics" will allow you to make a quick judgement of what we're dealing with here. Pincus is setting new standards in rapacious business practices. This is nothing to shrug off, somehow this guy needs to be spanked.

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    3. Re:Dont judge without reading TFA carefully by artor3 · · Score: 2

      Nope. They may be overpaid swine, but Zynga still has no right to demand they give the money back.

    4. Re:Dont judge without reading TFA carefully by the+linux+geek · · Score: 1

      It doesn't matter. If the shares were promised, they were promised - if there was no intention to deliver, they shouldn't have been promised in the first place. Honor is honor, whether or not you think the other person "deserves" it.

    5. Re:Dont judge without reading TFA carefully by JoeMerchant · · Score: 2

      From TFA, the small minority of employees asked to return the stocks are executives, not engineers, architects or the creative folk.... Most executives don't deserve what they get paid in USA. Most of them just lunch off of the productivity and manipulate for their personal gain. There's a term for that in the nature. It is called a parasite.

      He is doing the right thing. So let's not be quick in judging him. ok ?

      On an emotional level, I am with you, but if a parasite's promise to another parasite is not worth anything, what is a parasite's promise to an engineer worth?

    6. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      I read the article and didn't get that. All I got was they didn't want another google chef.

    7. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      They're not reneging on a contract. Why lie and say they are? They're asking for unvested shares that will never vest if the employee is fired. They're asking for a fair trade. Give-up something that is worthless unless it vests and get a job in return.

    8. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      Spoken like someone who's never owned a company or managed employees. I'd fire you first.

    9. Re:Dont judge without reading TFA carefully by shutdown+-p+now · · Score: 1

      Bait-and-switch is never the right thing.

      Besides, we don't know who exactly those executives are, and what they did or didn't do. I'll reserve my judgement on them until we have names and stories.

      Anyway, if he thinks those people underperform, why not just fire them for a cause and be done with it?

    10. Re:Dont judge without reading TFA carefully by Sipper · · Score: 2

      This is clearly wrong.

      From TFA, the small minority of employees asked to return the stocks are executives, not engineers, architects or the creative folk.... Most executives don't deserve what they get paid in USA. Most of them just lunch off of the productivity and manipulate for their personal gain. There's a term for that in the nature. It is called a parasite.

      He is doing the right thing. So let's not be quick in judging him. ok ?

      I think this is a case where we can make a judgment, because this is an abuse situation. These employees were promised these shares, given them, and now the company wants to renege and take them back, presumably without equally compensating those same employees for their true worth and threatening to fire them if they don't, which makes this situation clearly illegal and would represent false termination if they were to do so, which the company can clearly (and is very likely to be) be sued for.

      Also, keep in mind that some managers and other executives came up from engineering or similar fields. I think you're considering managers and executives parasites mainly because you don't understand the work that they do, and how difficult the work is. A good manager (or other executives) is actually a benefit to employees, and is not a parasite. The transition from engineering or a "doer" field to one of management is painful and uses a totally different skill set, to the point that the transition can literally be a life-changing decision. If you want to learn more about it, I recommend this book, which is relatively cheap ($14 new): http://www.amazon.com/Becoming-Manager-Managers-Challenges-Leadership/dp/1591391822

      This was one of two textbooks used for a masters level class in Engineering Management that I recently completed. [The other book was "Ethics 101" http://www.amazon.com/Ethics-101-Every-Leader-Needs/dp/0446578096 which I could also easily recommend.]

      I'm not a manager, nor have I ever been one -- but after taking this class I have a lot more respect for what they do. And I've worked for at least one or two good managers, but unfortunately also many bad ones that didn't care (some of whom should have been sued for the psychological damage they caused employees). So I have understanding (and empathy) for your point of view, but I also know there are a few respectable managers and executives out there, and I'm hoping to be able to work for one again if I can find one. [And I suppose I'm also willing to become one, but only if I find the right people to help mentor me to make sure I don't become one of the "dark side" managers.]

    11. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      He is doing the right thing. So let's not be quick in judging him. ok ?

      Then he shouldn't have promised that to them. It's classic renege on a contract. Doesn't matter if they're parasitic executives or not.

      Contracts aren't absolute. They're a two way street.

      Also, he is one of the founders of the company, and not a hired CEO (professional management ?).. this company is his baby and he cares about his employees and customers. If these executives didn't perform to his expectations, he has every right to fire them or take their unvested shares away and/or fire them. Most employment agreements clearly spell out that unvested stock is forfeited upon discontinuation of employment, even though it is implied.

    12. Re:Dont judge without reading TFA carefully by jrumney · · Score: 1

      While this makes the situation slightly less distasteful, the company should have reduced their compensation or fired them as soon as it noticed they were not performing. Not wait until IPO is looming and try and take back compensation already granted.

    13. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      I've worked in several startups and in at least two of them, there were games played with the stock options so that very few were worth much after a few rounds of funding - they were diluted several times over. The founders and CEO generally can do well if there's either an IPO or an acquisition at a decent price, while everyone else gets peanuts (well, maybe not peanuts, but hardly a payoff for several years of 60-70 hour weeks).

      I wonder why Zygna didn't just take that approach.

    14. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      He should've done that BEFORE, idiot. Not illegally. Afterwards. There's no justifying for this kind of bullshit. Do you work for Zynga? Are you perhaps a higher executive?

    15. Re:Dont judge without reading TFA carefully by russotto · · Score: 0

      a quick googling of "zynga ethics"

      0 results found. Did you mean "zynga crimes"?

    16. Re:Dont judge without reading TFA carefully by TapeCutter · · Score: 1

      He is doing the right thing. So let's not be quick in judging him. ok ?

      A parasite that exclusively feeds on other parasites is still a parasite.

      --
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    17. Re:Dont judge without reading TFA carefully by bstender · · Score: 1

      About 3,630,000 results (0.20 seconds)

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    18. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      The CEO (hired or not) has every right to fire those he thinks are underperformers, especially in California which has at-will employment; if he just did that, there wouldn't be a story, just some folks without jobs or stock. It's the blackmail part (do X or Y will happen, where X is "give up unvested options" and Y is "get fired") that's the problem here.

    19. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      You mean weakening employee trust in a the key form of startup compensation that both motivates and rewards people for taking serious risk? If Zynga can say those shares don't count then anyone can say those shares don't count. If they can say it for execs they can say it for engineers, architects and creative folk. At least that's what you have to expect when you are next offered a startup position. It's not even slippery slope - it's precedent and logical short term profiteering.

    20. Re:Dont judge without reading TFA carefully by JoeMerchant · · Score: 1

      Anyway, if he thinks those people underperform, why not just fire them for a cause and be done with it?

      Having his cake and eating it too... trying to shame the underperformer into giving up the shares because "he knows he doesn't deserve them," but offering him pity and the opportunity to stay on for salary.

      The contractually correct thing to do would be to fire him for cause, then offer him a new position the next morning, said new position to clearly exclude the shares... not sure if there are any "wash sale" or "sham transaction" type legal concepts that apply here, but it's pretty clear that the players involved aren't the sharpest knives in the drawer (yes, I know they're wildly successful and filthy rich, doesn't make them bright.)

    21. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      Well yeah, because I highly doubt they actually gave the engineers & productive folk many shares at all. Nor would they dream of giving the overperformer engineer & creative types bonuses.

    22. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      There's nothing to return. These are stock options vesting on a 4-year schedule. Execs trying to become "vesting zombies" and ride out 4 years on the easy plan were asked to step it up or step out. The options they had vested previously remained theirs.

      There's plenty of BS on both sides, but nobody left the company with less than millions of dollars.

    23. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      i suppose you could see this action as pincus actually being nice. if there are ppl that truly are not performing, he should just fire them. maybe he's giving them a chance to stay with the company even though they should be fire/laid off due to poor performance. we probably don't know all the details.

      i disagree with pincus' view of the google chef, however. if a guy is performing well, but got too much compensation in the beginning...too bad. live with the 'mistake' and let him keep his compensation. that's the reward he gets for joining a risky company in the beginning.

    24. Re:Dont judge without reading TFA carefully by Hentes · · Score: 1

      Divide et impera. They are just going one by one to avoid angering their employees all at once.

    25. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      From TFA, the small minority of employees asked to return the stocks are executives, not engineers, architects or the creative folk.... Most executives don't deserve what they get paid in USA. Most of them just lunch off of the productivity and manipulate for their personal gain. There's a term for that in the nature. It is called a parasite.

      He is doing the right thing. So let's not be quick in judging him. ok ?

      Please point out the exact wording in the article which supports your assertion -- I read it in full, and can't find it.

    26. Re:Dont judge without reading TFA carefully by Anonymous Coward · · Score: 0

      You are wrong. None of TFA from wsj or cnet say it's executives, in fact wsj speaks about "early employees" which most probably might be just developers.
      My guess is that you read wrongly the wsj which contains so many times "Zynga's executives" that you mixed it with the actual MIA list.

    27. Re:Dont judge without reading TFA carefully by bstender · · Score: 1

      I wouldn't be surprised if the writer of that article got paid a nice under the table 'bonus' to pen that article. (Suspiciously 'glowing' review with no mention of the mountain of ethical charges against them). First of all, 'nice' is not Pincus' MO, and if it was true, HE should give back HIS options for incompetence. A person is either an asset or not, but let's say he was just being nice, then how consistent is that with taking away their compensation? it's more like cruel humiliation. This 'give us back the options we wish we hadn't agreed to' is in line with all of the other crap that is becoming legend. http://finance.fortune.cnn.com/2011/11/10/zynga-stock-scandal/

      --
      look sig is kool
    28. Re:Dont judge without reading TFA carefully by khallow · · Score: 1

      None of your argument is relevant. This is a straightforward violation of the contract by Zynga.

    29. Re:Dont judge without reading TFA carefully by khallow · · Score: 1

      Why "lie" (here's a clue, not everyone who disagrees with you is "lying") and say they aren't reneging on a contract? If these unvested shares weren't a required part of the contract, then Zygna wouldn't have to go through the farce of extorting them back. They'd just take them away.

      In other words, their actions give it away. If Zygna could just take away those shares without breaking the contract, then they would have done so and at worst, we'd have a story about gullible employees. Instead, Zygna tries to bully those employees into giving up the shares. That means to me (as it should for you!) that they didn't have any legal standing for taking away the unvested shares in question.

      I don't respect companies or people who promise one thing and then find loopholes to take back what they promised.

    30. Re:Dont judge without reading TFA carefully by Tim+C · · Score: 1

      A contract's a contract, whether you like the person who signed it or not.

  13. Business ethics demands .... by fsckmnky · · Score: 1

    ... that you keep the stock they gave you ... because it's yours damn it. If you are fired because of it ... a 2 step process kicks in: 1. You put your personal belongings ( which looks like a set of backup tapes ) in a box and walk out holding your head high and ... 2. You hire Gloria Alred and claim the CEO sexually abused you. During the discovery part of the court preceedings, instruct the Zynga attorneys to enter their credit card number to receive a .pdf version of the paperwork they requested. It's a win-win-win-win.

  14. Scum..... by InspectorGadget1964 · · Score: 1

    If they gave it it is no longer theirs. Those shares belong to the employers

    1. Re:Scum..... by hedwards · · Score: 1

      Not if it was given for fraudulent reasons. An example would be theft by deception, a while back I seem to remember a woman pretending to have cancer in order to get gifts, or something along those lines, she was ultimately charged with theft by deception, I don't know where the trial on that one is going to go.

    2. Re:Scum..... by shutdown+-p+now · · Score: 1

      Those are vested stock options.

  15. There are more discreet ways to do this by symbolset · · Score: 2

    Microsoft, for example, just made the granted options worthless for many years.

    --
    Help stamp out iliturcy.
    1. Re:There are more discreet ways to do this by hedwards · · Score: 1

      I'm not so sure that it was intentional in that example. Most of the options that will never be in the money were most likely granted before DoJ oversight when there was still belief that the share price would make the options viable. Otherwise, I doubt the employees would have accepted them.

    2. Re:There are more discreet ways to do this by symbolset · · Score: 1

      Well, it's possible the workers believed that. It doesn't seem likely management did, considering they knew the largest shareholder was going to spend 20 years divesting and being re-granted equity to maximize his real return. Not that it matters - they also do a forced ranking system that induces turnover at a rates that prevents deferred bonuses like options from vesting anyway. And that's a second way to avoid paying the old grey mare her promised and earned carrot.

      --
      Help stamp out iliturcy.
  16. why not... by Anonymous Coward · · Score: 1

    just wait for the dude in the parking garage and break his legs with a tire iron while screaming, "Here's your f'ing shares, you bastid!"

  17. good by Anonymous Coward · · Score: 0

    "From a legal perspective, it seems stupid to approach people and ask them to to surrender their shares."I agree.

    1. Re:good by Anonymous Coward · · Score: 0

      The above post is spam, and deserves to be modded as such.

  18. Call for Mr. Maslow, call for Mr. Maslow by Anonymous Coward · · Score: 0

    Hahaha, the Silicon Valley Uber Knowledge Workers are starting to get kicked in the balls, just like the low-income poor they like to think they're not.

    Welcome to the club, suckers.

    1. Re:Call for Mr. Maslow, call for Mr. Maslow by Anonymous Coward · · Score: 0

      I was working poor for the first 15yrs after leaving HS but my Uber Knowledge Worker balls are now protected by wads of cash, kick as hard as you like, I won't feel a thing.

  19. Is this really all that strange? by Anonymous Coward · · Score: 0

    Couldn't the employee go through with signing the paperwork to give back the options and continue to work for the rest of his vesting period and then claim that they signed the paperwork to give them back under duress? This way they would have fulfilled their obligation under their original contract and they could fight this in court later.

    If the employees are not worth the compensation that they are being given(which includes their options/vesting plan), shouldn't they just be fired and then allowed to negotiate freely with Zynga or any other company for a new compensation package?

  20. read the fine print,folks by sgendler · · Score: 1

    Having been through this very scenario, you'd all be wise to go back and read your stock option grants very carefully because odds are very good that the fine print says that the company can 'buy' any unvested options back for the strike price, meaning you don't get squat. At a certain advertising company (that I'm perfectly happy to name - fastclick, taken over by valueclick), the acquiring company turned around and revoked the unvested options of every non-executive employee at the acquired company. They turned that around and offered a much less lucrative deal to anyone that stayed, then promptly drove the company into the ground - or should I say, continued the process of driving the company into the ground.

    IMO, the kind of people who would do something like this tend to be in the process of making their own bed. This'll come back to haunt Zynga, one way or another. The whole point of offering equity is because early employees are taking a huge risk, precisely because the potential upside is large. To have the efforts of those employees drive the value of the company up to the point that the company then turns around and says that their equity grant is now too large is just so much bullshit. Back when those shares were next to worthless and the early employees were putting in the long hours to make something from nothing, would the CEO have been so comfortable coming to those employees and telling them that they were only worth some fraction of what they had previously been offered? I highly doubt it.

    Sadly, this kind of attitude has become increasingly pervasive in this industry over the last decade. The startup culture developed because employees felt a real sense of ownership of what they built, in large part because they were actually rewarded for their efforts. With the rise of companies financed almost from day one by aggressive venture capitalists, that ethic has disappeared. Now, it is all about VC's preserving as much of the value for themselves as they think they can get away with, at the expense of the folks doing the actual work.

  21. Not Giving but Paid by jtb1965 · · Score: 2

    I am starting to think that Corporate America is completely lawless! I read the referencing article which used the phrase "givers remorse" I would say that as an employee if I forwent any cash salary in exchange for shares or options then it was a payment and not a gift. I would think just the threat of "surrender your hard earned options and shares or get fired" would have to be illegal, I wouldn't think they would even have to fire anyone just threaten. Surely there is a government body in the US that can and should step in here?

  22. Don't Kid Yourself by NicknamesAreStupid · · Score: 1

    They're cutting the deadwood. It will get ugly, but that's where the execs earn their lavish compensation. Anyone worth their stock will not be touched. This is the most depressed economy since the 1920s. I expect tactics like this to be the norm for at least a decade. What are 25 million unemployed going to do, strike?

    1. Re:Don't Kid Yourself by Surt · · Score: 2, Funny

      I'm kind of rooting for them to start striking. The rich. With knives.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
    2. Re:Don't Kid Yourself by syousef · · Score: 3, Insightful

      They're cutting the deadwood. It will get ugly, but that's where the execs earn their lavish compensation. Anyone worth their stock will not be touched. This is the most depressed economy since the 1920s. I expect tactics like this to be the norm for at least a decade. What are 25 million unemployed going to do, strike?

      Look at history. When this happens bloody revolution is the norm. I hate violence. So I'd hope you're wrong.

      --
      These posts express my own personal views, not those of my employer
    3. Re:Don't Kid Yourself by Lehk228 · · Score: 1

      dunno, ask marie antoinette

      --
      Snowden and Manning are heroes.
  23. what a disgusting company by musixman · · Score: 1

    what a disgusting company

  24. I hope I speak for all of us in saying... by billcopc · · Score: 1

    I hope this gets Zynga sued into oblivion. I always despised that skeevy company and am offended that they've become so large by peddling garbage games via Facebook. Simply clicking on one of their icons feels like the digital equivalent of sticking your dick in broken glass covered in hot sauce.

    --
    -Billco, Fnarg.com
  25. I'll just put this out here by Anonymous Coward · · Score: 1
  26. Not sure I'd want those shares.. by jcr · · Score: 1

    That place sure doesn't sound like anywhere I'd want to work, let alone keep any money in their stock.

    -jcr

    --
    The only title of honor that a tyrant can grant is "Enemy of the State."
    1. Re:Not sure I'd want those shares.. by syousef · · Score: 1

      That place sure doesn't sound like anywhere I'd want to work, let alone keep any money in their stock.

      -jcr

      You might prefer it to you and your family starving though. That's the economy you're living in. Good people go without work.

      --
      These posts express my own personal views, not those of my employer
  27. My father said by buss_error · · Score: 5, Insightful

    "Son, in life or business, always remember, you dance with the person you brought".
    This is a basic point of honor - you keep to the commitments you made.

    More expensive than you thought it would be? Tough, honor it.
    Harder than you thought? Tough, honor it.
    See something else that's better? Tough, honor it.

    Yes, I know, business isn't about honor, it's about profit. I simply feel there is no profit in being dishonorable, no matter how much money you can make. No Sir, "Greed is good" in not in my orison. You know the good companies in your life. Go look at their mission statement. Top one is "To serve our customers/community". You also know who the bad companies are. Look at their mission statements. The honest ones list "Increase shareholder value" as first. The dishonest ones say "To serve our customers/community". In the end, it isn't about what someone says, it's what they do. Actions don't lie. Words can.

    That is why I will listen closely to what someone says, but I pay more attention to what they do.

    In a perfect world, someone would whisper this in Sony's, RIAA's, MPAA's, ASCAP, AT&T's, and many others ears:
    "Honor is a lasting value.
    Try it.
    For a change."

    --
    Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.
    1. Re:My father said by Bob9113 · · Score: 1

      In a perfect world, someone would whisper this in Sony's, RIAA's, MPAA's, ASCAP, AT&T's, and many others ears:
      "Honor is a lasting value.
      Try it.
      For a change."

      In the real world, where sociopaths really do exist and really are out to get you, there is a better answer. It has been studied extensively and leads to the optimal outcome for society as a whole. The right answer is tit for tat with forgiveness.

      To summarize, and to mangle an existing phrase: "Never cut a sociopath an even break." Once they show you their colors, you treat them as they treat others -- and as a pro-social actor, you give them a chance to redeem themselves once in a while.

      If your definition of "honorable" is martyrdom, go ahead and turn the other cheek. If your definition is "maximizing societal value", don't let sociopaths get in your pockets. It only encourages them.

    2. Re:My father said by Anonymous Coward · · Score: 0

      Well said, sir. Well said. Sadly, it seems a vast majority of those both at the top and bottom of the food chains are all interested in the same thing. It's all about me and how much money/stuff/whatever I can get for the least amount of real "work". Yes, there are those of us that are exceptions. But let's not blame everything on the CEO fat cats, either. To a degree, it's our own fault for tolerating such horrendous behavior over the course of more than a generation now. And that's bad behavior across the board - personal and corporate responsibility? What does that mean? Go ask 10 people on the street about corporate responsibility and I'm sure you'll get a vast majority agreeing with "Yeah - occupy movement is great!", "Those damn greedy CEO's", etc., etc. Then ask them about personal responsibility and see what kind of answers you get. I think you'll be disappointed. Where do you think gen Y'ers learned their self-entitled "all about me" behavior from? "It's not my fault - it's the ". Sad.

    3. Re:My father said by Anonymous Coward · · Score: 0

      Well said, sir. Well said. Sadly, it seems a vast majority of those both at the top and bottom of the food chains are all interested in the same thing. It's all about me and how much money/stuff/whatever I can get for the least amount of real "work". Yes, there are those of us that are exceptions. But let's not blame everything on the CEO fat cats, either. To a degree, it's our own fault for tolerating such horrendous behavior over the course of more than a generation now. And that's bad behavior across the board - personal and corporate responsibility? What does that mean? Go ask 10 people on the street about corporate responsibility and I'm sure you'll get a vast majority agreeing with "Yeah - occupy movement is great!", "Those damn greedy CEO's", etc., etc. Then ask them about personal responsibility and see what kind of answers you get. I think you'll be disappointed. Where do you think gen Y'ers learned their self-entitled "all about me" behavior from? "It's not my fault - it's the [fill-in-the-blank]". Sad.

    4. Re:My father said by Anonymous Coward · · Score: 0

      "I'll keep it short and sweet. Family, religion, friendship ... these are the three demons you must slay if you wish to succeed in business."

      CM Burns

    5. Re:My father said by Anonymous Coward · · Score: 0

      At first I read that as 'you dance with the person you bought'.

    6. Re:My father said by Anonymous Coward · · Score: 0

      Actions don't lie. Words can.

      Have you never seen a magician perform? Magic is all about lying through action. Yes, it is much harder to lie through action, but it isn't impossible.

    7. Re:My father said by lgarner · · Score: 1

      This reminds me of "the Golden Rule" that I try to live by: "Treat others as you would like to be treated."

      When companies or individuals treat others in this manner, that indicates how they would like to be treated. As a nice guy, I try to accomodate them.

  28. IT'S NOT EMPLOYEES by Anonymous Coward · · Score: 2, Informative

    It's EXECUTIVES who awarded each other obscene levels of options. These options would DILUTE the shares that deserving rank-and-file employees should have. The CEO is playing hardball and threatening to toss the execs who pulled this.

  29. I say, keep the shares and leave by Anonymous Coward · · Score: 0

    It's not that hard to find a different tech job and you keep the shares that will make you rich in a short while.

  30. Loads of trust here by Algae_94 · · Score: 2
    From TFA

    "...the firm's executives reportedly justified their strategy by saying it was best for the company. With the unvested shares, the executives believed they could attract more top talent with the promise of stock."

    Do they really think they will be able to attract top talent with the promise of holding on to some stock for awhile, but having it taken back before they can actually sell it? I seriously doubt any future employees will want even one UNvested share of stock.

  31. wow... by rabidmuskrat · · Score: 0

    Holy crap that's a terrible thing to ask of your employees.

    --
    Need any dad jokes?
  32. The practice won't spread by mysidia · · Score: 1

    and, were the practice to catch on and spread, would erode a central pillar of Silicon Valley culture, in which start-ups with limited cash and a risk of failure dangle the possibility of stock riches in order to lure talent.'"

    I think what will happen is Employees will use this case as an example to negotiate better terms. For example... automatic full vesting of all grants/options, if the employee is fired for any reason not on a short list and verified by an independent third party auditor.

  33. Clarification of how stock agreements work by Anonymous Coward · · Score: 4, Informative

    Most of the articles/commenters have used very imprecise language about the nature of what Zynga is asking their employees to give up.

    When you join a tech startup you are granted the option to buy some number of shares of the company's stock at a certain price (which, when you join very early, is incredibly low compared to what it will be when the company is sold/goes public). To prevent people from taking the job for a day, buying all their shares, and leaving, the options become available ("vest") on a schedule such that you are able to buy some additional percentage of your shares every additional month you work there. Additionally, in most agreements, your options stop vesting (obviously) but also evaporate within a few months after you leave a company (so you can buy the vested shares or just get nothing).

    Note that they're still just options until you actually exercise them (buy them for the low option price).

    It sounds like the Zynga employees are being asked to forfeit unvested shares - not only have the employees not yet paid to own these shares, they haven't even worked at the company long enough for those shares to be available for purchase (that's what an unvested share is). This is not like Zynga taking money or any other assets from their employees - they're just modifying an agreement that's part of their compensation. It's most closely equivalent to having been promised an incredibly large bonus in the future and then them telling you that you'll be fired if you don't agree to accept a lesser bonus.

    It's strange that they're threatening people with their jobs here considering that there are probably much less dramatic ways to accomplish this same thing. For one thing, most stock option agreements are granted at the board's pleasure - if the board wants to cut you off at any time, they can. In that sense, there's nothing illegal (I am not a lawyer) about reducing the number of shares in someone's option agreement.

    Don't get me wrong - this is a dick move that's congruent with Zynga's less-than-stellar history of ethics. As someone who works for a tech startup, I'm scared that something similar would happen to me/lucky that I work for good natured people.

    1. Re:Clarification of how stock agreements work by TurtleBay · · Score: 1

      Sorry but, you don't know what your talking about. Even if unvested, options have very real value that can be extrapolated from the strike price of the option and the current valuation of the company (which is possibly around $10 bn given current IPO rumors). The board can grant new options, but once you are granted options, they cannot rescind them any more than they can ask for your pay back. My guess here is that management was surprised how high their IPO valuation is and there best bet now would be to dilute the company under the table than ask the employees for their options back.

  34. corporations? by Anonymous Coward · · Score: 0

    guys, we are not talking about a corporation here, this company has owners, real flesh and bone assholes

  35. Dont' quit, but don't agree either. by tomhudson · · Score: 5, Interesting

    If you quit, you can't collect unemployment. If you refuse, then they have to decide to fire you ... and either way, you've still go the shares.

    Also, this could be interpreted as constructive dismissal, in which case you can tear up that non-compete you signed, since they have broken the terms first.

    1. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 5, Interesting

      Unvested shares aren't actually money in your wallet if you quit the company or get fired. They're only worth something after they vest, and the agreement at companies such as these is that they don't vest if you've left the company before the vest date (whether you've been fired or quit).

    2. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 5, Informative

      In CA, you can get unemployment even if you quit, get fired for stealing, etc.

      False. You can get it if you quit, but you have to have a very good reason for quitting and you have to take steps to rectify the issue first.
      http://www.edd.ca.gov/uibdg/Voluntary_Quit_VQ_5.htm

      You cannot collect at all if you are terminated for willful theft.
      http://www.edd.ca.gov/uibdg/Misconduct_MC_140.htm

      Two employees at my porn store (former employees, that is,) are collecting. On our dime.

      You either do not know the whole story, or are withholding relevant information.

    3. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 1

      Non compete's are almost never enforceable anyways unless your a cxo class employee or have some extremely rare skill

    4. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 0

      >either way, you've still go the shares.

      You only get to keep vested shares.

      These are unvested shares at issue. If you quit, or are fired, you lose them. If you are fired because you would not give back the shares, you might have a case to get them back, or a settlement of some sort.

    5. Re:Dont' quit, but don't agree either. by Khyber · · Score: 0

      These employees were caught stealing on camera.

      They were fired immediately.

      They are collecting unemployment.

      It's that simple. Shit like this happens on a routine basis.

      You point to the rules as if the government follows them all the time. You are mistaken.

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    6. Re:Dont' quit, but don't agree either. by Galactic+Dominator · · Score: 5, Funny

      In CA, you cannot collect unemployment benefits if you were dismissed for gross misconduct. Such misconduct includes stealing from your employer. Don't let facts get in the way of telling a good story however. Hyperbole and misdirection are important literary devices.

      --
      brandelf -t FreeBSD /brain
    7. Re:Dont' quit, but don't agree either. by Baron_Yam · · Score: 5, Interesting

      I'm willing to bet that almost any jurisdiction in the United States would find someone getting fired to prevent the vesting of shares would be an act of fraud on the part of the employer.

      The contract is: work for us, don't quit or get fired for cause, and if we are a success you'll have shares and maybe get rich. Their 'cause' is 'we might have to pay up'. FRAUD!

      The smarter employees should be starting a class action lawsuit right now, and burn that company to the ground and pillage the corpse for whatever they can get.

    8. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 0

      Zynga's based in California, where non-competes are non-existent.

    9. Re:Dont' quit, but don't agree either. by Gorobei · · Score: 5, Interesting

      >either way, you've still go the shares.

      You only get to keep vested shares.

      These are unvested shares at issue. If you quit, or are fired, you lose them. If you are fired because you would not give back the shares, you might have a case to get them back, or a settlement of some sort.

      Yep, courts tend to take a pretty dim view of the "we agreed you get X if you are working for us, please give up X or we will fire you" gambit: it's almost bad faith by definition.

      Happened to me once: I just printed the memo and put in on my cube wall; got a few lawyers/mangers dropping by to "explain why I needed to sign." I sweetly said no: they said "ok" and got out of the room fast: they were smart enough to figure that concocting a paper trail to fire a well-rated employee, given a memo like that, was somewhere between "bad" and a felony.

    10. Re:Dont' quit, but don't agree either. by SQLGuru · · Score: 1

      Which would leave them with worthless shares anyway......and no job.

    11. Re:Dont' quit, but don't agree either. by Sponge+Bath · · Score: 3, Funny

      Hyperbole and misdirection are important literary devices.

      ...and porn. Don't forget the porn.

    12. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 0

      You wouldn't necessarily have the shares, as they are probably not vested at this point.

    13. Re:Dont' quit, but don't agree either. by demonlapin · · Score: 0

      You're saying what is supposed to happen. He's talking about what actually does. That's the discrepancy.

    14. Re:Dont' quit, but don't agree either. by ChatHuant · · Score: 1

      If you quit, you can't collect unemployment. If you refuse, then they have to decide to fire you ... and either way, you've still go the shares.

      Not necessarily. The options may require the employee stay with the company for a certain time before they vest. Many companies offer shares or options that vest over a few years (maybe 25% per year, or so), and, if you leave the company you lose the ones not yet vested. It depends on the original contract (which I haven't seen), but it's possible Zynga could win either way

    15. Re:Dont' quit, but don't agree either. by rsilvergun · · Score: 5, Informative

      Um... did you even bother to contest it? In my state (Arizona) if an employer contests, they win. Period. You're either none too bright, a paid shill astroturfing for a right wing think tank, or withholding information. Just out of curiosity, which is it?

      --
      Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
    16. Re:Dont' quit, but don't agree either. by Dahamma · · Score: 2

      No, you don't have the shares. That's what is especially sleazy about it (we can now name this "Zynga-sleazy"). They were asking for unvested shares back, not vested shares (there is nothing they can possibly do about vested shares). Once you leave the company (whether you quit or are fired), your shares stop vesting.

    17. Re:Dont' quit, but don't agree either. by NeutronCowboy · · Score: 1

      Bullshit. As others said, that's not how it works. I don't think you are necessarily a shill, but you certainly have no clue about the labor laws in CA. Getting fired for cause is hard and requires solid documentation, but it is possible, and the employer won't have to pay out unemployment. If they are, I suggest getting a new HR person and boning up on labor law.

      --
      Those who can, do. Those who can't, sue.
    18. Re:Dont' quit, but don't agree either. by BoiseAlf · · Score: 1

      If they are, I suggest getting a new HR person and boning up on labor law.

      It's a porn store - they have other things to bone up on aside from labor laws.

    19. Re:Dont' quit, but don't agree either. by VAElynx · · Score: 2

      So?
      First, they might get compensation ruled by the court, money for which gotten seizing the company's assets.
      Second thing, if someone wants to fuck you over, better not bend over and supply the lube. Working for an asshole company like that is likely not a win either as their policies are probably jackass dictated in other areas - I also bet many of those people are counting on the stock as their main compensation. Furthermore, doing something like that cuts off the way for other unscrupulous companies who might try the same.. .it's for the good of IT workers everywhere.

    20. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 0

      You're either none too bright, a paid shill

      Or Khyber.

    21. Re:Dont' quit, but don't agree either. by tomhudson · · Score: 1
      Except that they're reneging on the original deal. That's why they had to settle with two of the people who said "make me a better offer" (yes, I actually RTFA).

      One is no longer working there, the other one still is ... and Zynga was probably told "... and if you fire them now, be ready to have an a**-reaming in court."

    22. Re:Dont' quit, but don't agree either. by porges · · Score: 2

      Oh for God's sake. Saying "In California, you can do so-and-so" and then turn around and say "well, I didn't mean legally" is some kind of canonical waste of everybody's time. By that logic, we can say "In California, you can shoot a guy in the head", because somebody did.

    23. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 0

      You lose unvested shares if you are fired, so they get what they want back and more if they fire you.

    24. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 0

      in which case you can tear up that non-compete you signed

      Non-compete agreements are unenforceable in California.

    25. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 0

      In california non-competes don't hold up in court. That is one of the reasons why startups in CA actually happen. Previous employers cannot sue new business owners that have a new idea that is derivative of their previous employers. Trade secrets on the other hand is an issue, but zynga isn't exactly the pioneer in new ideas.

    26. Re:Dont' quit, but don't agree either. by KhabaLox · · Score: 0

      I'm willing to bet that almost any jurisdiction in the United States would find someone getting fired to prevent the vesting of shares would be an act of fraud on the part of the employer.

      I'll take that bet. PM me your email and I'll tell you where to send the check.

      --
      Ceci n'est pas un sig.
    27. Re:Dont' quit, but don't agree either. by Kagato · · Score: 4, Informative

      It's not the first time for this in silicon valley. Vulcan ventures fired Leo laporte when he refused to turn over shares when they sold TechTv to comcast. I think Laporte had vested shares at least but it's not unheard of for a VC to fire a bunch of people before their vesting date.

    28. Re:Dont' quit, but don't agree either. by Dahan · · Score: 4, Informative

      You're either none too bright, a paid shill

      Or Khyber.

      This is the correct answer. Khyber constantly posts these BS stories--here, on lulz.net, forums for pot growers, and everywhere else he hangs out. Don't forget that he claims that his other job besides porn store clerk is research director for the LED company he advertises in his .sig.

    29. Re:Dont' quit, but don't agree either. by shentino · · Score: 5, Insightful

      Getting revenge can be quite satisfying if your shares are going to be worthless no matter what you do anyway.

    30. Re:Dont' quit, but don't agree either. by Dahamma · · Score: 2

      Yeah, I read TFA as well - those employees both took a deal and got less than they were originally offered, which is what Zynga wanted anyway. IMO the ideal situation would be the employees refusing a settlement and saying "thanks, I now have this in writing and will ignore it - go ahead and fire me since you have given me proof you fired me for illegal cause, and I should be able to recoup all of the potential earnings you prevented me from getting."

      Then again, as much as a sleazy douchebag as the Zynga CEO is, it sounds like he did focus on employees who were not earning their keep. They probably realized they were still getting way more than they had originally expected and decided to take the bird in the hand...

    31. Re:Dont' quit, but don't agree either. by Solandri · · Score: 1

      False. You can get it if you quit, but you have to have a very good reason for quitting and you have to take steps to rectify the issue first.

      It's really up to the examiner at the EDD who is handling the particular case. While I was handling payroll, we hired someone for our landscaping crew on an hourly wage. We scheduled him 5 days a week for 6-8 hours a day, for the entire month. He worked for the first week, took off during lunch on the first day of the second week, and we never saw him again until a month later when he showed up to collect his paycheck. Unfortunately the staff member who gave him his check didn't follow my instructions to have him see me regarding his employment status. The entire time, the manager of the landscaping crew was begging us to replace him because he was having had to work most of the month a man down. So about 5 weeks after the last day he showed up for work (6 weeks after we hired him), we marked him in our records as voluntarily quit and hired a replacement.

      A month later, I got a letter from the EDD saying he was filing for unemployment against us. Since he'd only worked with us a week, the amount was trivial, but based on principle I made copies of our work schedules showing when he was supposed to work, his time card showing the days he showed up, wrote a letter explaining how he hadn't shown up for work for over a month, and we'd tried repeatedly to contact him at the phone numbers he left without success. So we had decided he had quit and hired a replacement.

      A couple weeks later, the EDD wrote back saying that their decision was that we had fired him, so he qualified for unemployment. Whatever. The amount wasn't worth my time to fight it.

    32. Re:Dont' quit, but don't agree either. by Kaenneth · · Score: 1

      So, why doesn't your boss pursue criminal charges?, and/or sueing them for losses, including the unemployment paid?

      Sounds like he needed a better laywer. (Represented himself?)

    33. Re:Dont' quit, but don't agree either. by mwvdlee · · Score: 1

      Perhaps if they are red LEDs? Even the porn industry needs to save electricity.

      --
      Slashdot social media options: AIM, ICQ, Yahoo, Jabber and Mobile Text. Why no MySpace?
    34. Re:Dont' quit, but don't agree either. by mcvos · · Score: 1

      Yeah, buy what if Zynga is really a front for the Russian mafia?

    35. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 0

      If you quit, you can't collect unemployment. If you refuse, then they have to decide to fire you ... and either way, you've still go the shares.

      These are unvested shares, so they are worthless once you're no longer employed.

    36. Re:Dont' quit, but don't agree either. by Hal_Porter · · Score: 1

      Don't forget that he claims that his other job besides porn store clerk is research director for the LED company he advertises in his .sig.

      That's like the ultimate synergy! Lighting porn with bright, bluish point sources is the only way to get ahead in the "heinously ugly lighting" stakes.

      Judging by the porn I^Hmy friends have watched, ugly lighting is de rigueur in this genre and considerable effort is taken to make sure that the lighting is ugly enough to be competitive.

      --
      echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
    37. Re:Dont' quit, but don't agree either. by JosKarith · · Score: 2

      A friend of mine had a new HR drone start at the place they work who decided that everyone needed new contracts. After a month of badgering to sign the revised contract he went through it and found a whole load of extra stuff that had been slipped in (not subtly, the old contract was about 8 pages, the new one about 10). He crossed out all the sections he didn't agree to, initialled the crossings out, signed the contract and photocopied it before handing it back.

      --
      'Don't worry' said the trees when they saw the axe coming, 'The handle is one of us.'
    38. Re:Dont' quit, but don't agree either. by VAElynx · · Score: 1

      Not much changes. This is too public IMHO for blackmail or similar to take place, especially given it's the US and not back home. Furthermore if it was russian mafia frontend, I'd suspect that the national defense agencies would be looking into them, and as such they'd have to lay bloody low.

    39. Re:Dont' quit, but don't agree either. by fireylord · · Score: 1

      not really, they'd be extracting gold hard cash form zynga, and rightly so.

    40. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 0

      In Texas, you can get away with murder on the sole reason that 'they needed killing.'

      I know a guy who shot both his wife and her lover after he came home unexpectedly and found them in his bed.

      Texas let him walk for killing the wife, but he served time for killing her lover, since the court ruled that the guy didn't know she was married and it wasn't his responsibility to enforce her marriage vows anyway.

      Fred only served a couple years, though - it was a minor manslaughter rap "in the heat of passion" which is actually a pretty good defense in Texas.

    41. Re:Dont' quit, but don't agree either. by tomhudson · · Score: 1
      You get them (or their cash equivalent) in the ensuing threat to sue.

      Please RTFA - 2 employees reached settlements, and one is still working there ... and now probably has even better job security because any firing would be seen as retaliation and they KNOW he'll "lawyer up."

    42. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 0

      Don't forget he made millions on BitCoins, so he's clearly a part time porn store worker for fun whilst he funds his LED business.

    43. Re:Dont' quit, but don't agree either. by s73v3r · · Score: 1

      I'm guessing that most of them should be able to find gainful employment fairly quickly.

    44. Re:Dont' quit, but don't agree either. by tompaulco · · Score: 1

      If I was a judge, I would order the company broken up and sold off and all the profits shared amongst the employees with unvested shares.

      --
      If you are not allowed to question your government then the government has answered your question.
    45. Re:Dont' quit, but don't agree either. by FredFredrickson · · Score: 1

      So all this time I've been "playing" mafia wars, I've actually been using an interface to do the mafia's real dirty work? oh man..

      --
      Belief? Hope? Preference?The Existential Vortex
    46. Re:Dont' quit, but don't agree either. by DurendalMac · · Score: 1

      Not true. I've seen local businesses put employees under non-compete and then screw them in court when they quit/get laid off and then try to find a job elsewhere in town.

    47. Re:Dont' quit, but don't agree either. by Anonymous+Cowpat · · Score: 1

      Are these fully contested cases?

      --
      FGD 135
    48. Re:Dont' quit, but don't agree either. by MHolmesIV · · Score: 1

      Actually, when you leave a company, for any reason, you forfeit unvested stock options. Since this article was about unvested shares, the employees who quit or were fired would lose them automatically.

    49. Re:Dont' quit, but don't agree either. by tomhudson · · Score: 1

      It depends. If you quit because of constructive dismissal or other malfeasance on the employers' part, you can sue, and you can recover either the value of the shares or the shares themselves.

    50. Re:Dont' quit, but don't agree either. by Khyber · · Score: 0

      Aww, did you get mad and have your furry brigade mod me down? How typical. :D

      --
      Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
    51. Re:Dont' quit, but don't agree either. by shentino · · Score: 1

      Did your company bother to press criminal charges?

      I'd think that with solid proof the guys would at the very least wind up getting thrown in jail.

    52. Re:Dont' quit, but don't agree either. by DurendalMac · · Score: 1

      They went to court and lost, so I'd say so.

    53. Re:Dont' quit, but don't agree either. by Anonymous Coward · · Score: 0

      What and ruin his chance to claim the government is the problem? Are you some kind of commie liberal?

  36. I believe the proper reply would be by Fnord666 · · Score: 1

    I believe the proper reply would be to simply refer them to the reply given in Arkell v Presserdram.

    --
    'The tyrant will always find pretext for his tyranny.' - Aesop's Fables
  37. Just Boycott Zinga by Anonymous Coward · · Score: 0

    The best thing people can do is to boycott all Zinga applications. This is the sure-fire way to get the attention of the corporation. Unfortunately, I have my doubts that the addicted players will boycott, but perhaps people will support a boycott if we can spread the word.

  38. F' em - let them BUY those options back by Anonymous Coward · · Score: 0

    Look,
      if the founders have an idea that is risky, and they convince people to take equity instead of money, those people are quite literally gambling. You might hit it big, or more likely you spend a couple years eating ramen and working long hours and have bupkes to show for it. This smacks of changing the rules in the middle of the game. It's great that the google chef made millions.. he was willing to gamble instead of taking a justly deserved salary, and he quite literally hit the lottery. He could have worked for some other startup and cashed out with zilch.

    I got really, really tired of people calling me up and saying: I've got this great idea, would you like to work with me for free, for a small equity share. You ask them, how sure are you about it... "I'm really sure". Are you willing to pay me a regular salary of, say, $100k/year. "Oh no, I'd have to get a loan, and I don't have any assets for security". My response: Oh.. you aren't really sure then.. You think you have a good idea, but you're not putting up much cash, and you want ME to put up my time, worth 100k on the open market, against a 5% share on speculative "millions". Go back to school and study that whole "expected value of a probabilistic distribution" thing you young whippersnapper. Spend your time on flipping burgers, writing position papers, or actually learning how to do what you want to do.

    They're entrepeneurs: they can PAY for the services received, or they can let people along for the speculative ride.

  39. Who are the backers of Zynga? by dbc · · Score: 3, Insightful

    As a Sili Valley engineer, here is what I want to know: Who are the VC's and board members behind Zynga that told the CEO that this was a good idea? I want to avoid any company that those clowns are involved with. This is not how Silicon Valley works. Stock options are part of the compensation. At two companies I worked at, the stock options turned out to be worthless. That happens a lot. When the options turn out to be worth something, you darn well better let me keep them. If you don't do that, there is no way in hell that I will ever work at any company that any of those VC's or other financiers are involved with, fuck you very much. That is the Silicon Valley social contract. The clowns that did this need to be outed and ostracized.

    1. Re:Who are the backers of Zynga? by klui · · Score: 2

      Very easy information to get:

      Board of Zynga http://company.zynga.com/node/876:
      Mark Pincus
      Zynga CEO and Founder

      Bing Gordon
      Kleiner Perkins Caufield & Byers Partner

      Brad Feld
      Foundry Group Managing Director

      Jeffrey Katzenberg
      CEO of DreamWorks Animation

      John Schappert
      Director and Chief Operating Officer

      Owen Van Natta
      Director and Chief Business Officer

      Reid Hoffman
      LinkedIn founder and Executive Chairman

      Stanley J. Meresman
      Director

      Investors: http://allthingsd.com/20110718/zynga-updates-ipo-filing-to-list-investors-and-googles-one-of-them/

      "Here's the list of investors. I did not include all of the mutual fund holdings because there are dozens:

      Google Inc.
      SOFTBANK CORP.
      DAG Ventures Limited
      SB Asia Pacific Investments Limited
      Digital Sky Technologies Limited
      DST Global Limited
      Kleiner Perkins Caufield & Byers
      Fenwick & West LLP
      Institutional Venture Partners XII, L.P.
      Union Square Ventures 2004, LP
      Union Square Principals 2004, LLC
      PG Ventures, Inc.
      Foundry Venture Capital 2007, L.P.
      F&W Investments LLC-Series 2007
      Laird H. Simons, III
      Theodore H. Pincus Declaration of
      Trust Dated June 10, 1992
      Archimedes Capital
      Reid Hoffman
      Paul Martino
      The Dâ(TM)Anconia Trust
      Peter Thiel
      Avalon Ventures VIII, LP
      Gary Leff
      European Founders Fund GmbH & Co.
      Kardinal--Faulhaber"

  40. pull a Peter Gibbons and do the minimum not to get by Joe_Dragon · · Score: 1

    fired.

    Also space out at the desk for most of the day.

  41. Illegal to reclaim by Anonymous Coward · · Score: 0

    If my employer accidentally overpaid me on a paycheck, they can't force me to return it. That includes docking future pay

    1. Re:Illegal to reclaim by bstender · · Score: 1

      seriously? that seems wrong. (also, wrong to keep it.)

      --
      look sig is kool
    2. Re:Illegal to reclaim by nosferatu1001 · · Score: 1

      Certainly not true everywhere. Explicitly allowed in the UK

  42. Grim Trigger by epine · · Score: 3, Informative

    Zinga will still attract talent, but the contracts will have thicker prose about termination and vesting conditions, so it will be much harder to pull this stunt a second time. But perhaps at this stage of growth they are beyond that.

    I watched Politics, Strategy, and Game Theory last night, which talks about Grim Trigger and the conditions under which, in iterated prisoner's dilemma, you care more about the future than defecting in the present moment.

    It's a competent lecture with no great pizzazz.

    Here's a fairly nice piece by an undergraduate I stumbled upon brushing up on Grim Trigger: Debunking the Prisoner(slashcode fuckup)s Dilemma on Robert Axelrod(slashcode fuckup)s Emergence of Cooperation among Egoists and why cooperation is a lot more common than the shallow analysis would have you believe.

    I really wonder what payoff matrix he constructed to author that blog under no fixed identity. I found a Tweet referencing the site by the apparent author with one or two clues about his circumstance.

    The punishment for Zynga in future iterations are employment contracts with a lot less room to wiggle if they screw up future hires. The reward in the present iteration is yanking back a substantial chunk of the entire company.

    If the quiet vestors really aren't showing up and pulling their weight, it doesn't seem great to let them get away with that either. I don't think Zynga's presumption is that they can't fight this, but more like "the effort involved will be a shock to their lazy asses" so they are likely to settle without going ten rounds.

    1. Re:Grim Trigger by epine · · Score: 1

      Also apropos, check out Ch.4: The faults of others by Jonathan Haidt on myopic self-interest before yanking morality play red lever.

    2. Re:Grim Trigger by superwiz · · Score: 1

      You might not be right about the present iteration. If they get sued, they have to disclose the suit in pre-IPO filing. This would, actually, put IPO on hold. So they might be screwing themselves.

      --
      Any guest worker system is indistinguishable from indentured servitude.
    3. Re:Grim Trigger by Anonymous Coward · · Score: 0

      (slashcode fuckup)

      Trying using real single quotes/apostrophes instead of dumb quotes.

    4. Re:Grim Trigger by Anonymous Coward · · Score: 0

      Try masturbating harder.

  43. Good news! by Anonymous Coward · · Score: 0

    Could this be the downfall of those shitty pay to play little shits they pass off as a game?

  44. Are these people serious? Read the article linked by Weaselmancer · · Score: 5, Insightful

    I'm not making this up! They seriously said this:

    Although Zynga's decision might be met with some criticism, the firm's executives reportedly justified their strategy by saying it was best for the company. With the unvested shares, the executives believed they could attract more top talent with the promise of stock.

    Who in their right mind would trust their upper management to actually deliver?

    "Hey! We lured in our initial staff with some stock options, but then we strongarmed it back from them once it looked like it might be worth something. They took the gamble and we got the payoff. Now we would like to offer it to you! No, really, honest - we wouldn't do that to you! Just the people we initially hired. Hey...wait...where are you going?"

    --
    Weaselmancer
    rediculous.
  45. simple response by superwiz · · Score: 0

    Sue and get a restraining order to put IPO on hold until the suit is resolved. They'll back off in under an hour.

    --
    Any guest worker system is indistinguishable from indentured servitude.
    1. Re:simple response by Skapare · · Score: 1

      If the discovery in the lawsuit would require information they are supposed to be quiet about for the IPO, that would suspend the IPO.

      --
      now we need to go OSS in diesel cars
  46. Re:It's Zynga seems, not "Zynga seem"! by pavon · · Score: 3, Informative

    In British English, the proper conjugation is to treat companies and other organizations as plural. A google search for the submitter, ardmhacha, gives results which are all related to Ireland. Thus he was writing correctly.

  47. Re:It's Zynga seems, not "Zynga seem"! by Anonymous Coward · · Score: 0

    I'm pretty sure that's a US/UK thing. Try travelling outside of your country for once.

  48. Innovation == Feudalism ? by woolio · · Score: 0

    Just like all the bank CEOs who work really hard producing things of value we take for granted. They need to be paid for such a hard life and creating all sorts of innovation.

    If we didn't have CEOs, to whom would we give our money?

    Charging $5 to use an ATM is not innovation.

    Charging more dollars for DSL (a 10-year old technology) than 4G wireless internet is not innovation.

    Underpaying H1-B employees instead of hiring qualified domestic workers at market salaries is not innovation.

    1. Re:Innovation == Feudalism ? by Anonymous Coward · · Score: 0

      Read the part on working only 6 hours a day and playing golf as being so haaaaard? I believe sarcasm was applied

  49. Remember by slapout · · Score: 1

    The only people your Farmville crops are feeding are the employees at Zynga

    --
    Coder's Stone: The programming language quick ref for iPad
    1. Re:Remember by znerk · · Score: 1

      The only people your Farmville crops are feeding are the employees at Zynga

      ... and apparently not all of those...

      --
      This work is licensed under a Creative Commons Attribution 3.0 Unported License.
  50. Be very very careful with stock option offers by Skapare · · Score: 3, Informative

    I once got a job offer several years ago that included stock options, because the salary was below market. The catch was the offer merely said "stock options" and gave no terms whatsoever. WTF! That's like saying they would give me a salary compensation without saying how much. I explained to the recruiter that was trying to hire me that I had to interpret the options part of the offer as "1 share per year, vested in 10 years". He said it would be a lot more than that. I asked him how much more. But he only said that they were still working out the details with the lawyers. So I declined the offer. They later went out of business, so I guess they must have had trouble doing a lot of things right.

    If you get an offer with stock options, you need to know exactly what the terms are. And technically, you should understand the risks, including the risk of the company going under. And to do that properly you need to look at the business plan and financials. You almost certainly won't get to see the latter unless the offer is for CFO or CEO. If you're sure the company will succeed, then you at least need to know the terms to know how much you could get out of it, and the risks they will cheat you.

    --
    now we need to go OSS in diesel cars
    1. Re:Be very very careful with stock option offers by evil_aaronm · · Score: 1

      I got a job, once, where the "health insurance benefits" were a pamphlet from the local business association offering a membership in their policy. The company wouldn't pay anything toward your membership, but, hey, if you signed up, and paid in full, you were covered. Ergo, they offered "benefits".

      I left after about 9 months - the owner was a scumbag; hello Mike K. from MicroTraining in Olean, you asshole - and went out of business after buying lots of equipment on credit, selling it to customers, and then not paying for the gear. Also billed his partner ~ $400 a month for a 56k leased line when DSL from Verizon was $30 a month. Top notch kind of guy.

  51. Told You So by Anonymous Coward · · Score: 0

    Months ago told you so.

    FU

  52. Kill Mark Pincus by Anonymous Coward · · Score: 0

    Shoot him in the back of the head and throw him in a shallow grave. Fuck it, might as well wipe out the whole executive class. Anyone up for a repeat of Cambodia?

  53. Bad form, I know by symbolset · · Score: 1

    Don't think of it as being cheated. Consider it an accidental charitable gift to the B&M-G Foundation.

    Third way, while we're at it: stock buybacks to buy stocks at the same rate the Chairman sells stocks and then stock grants to him to give them back. It's like magic money transfers, only legal. Like a dividend, but to only one stockholder and paid over and over in compensation for a decade of calling in four times a year to say "hey Steve! You're doing GRrrrrEAT!"

    --
    Help stamp out iliturcy.
  54. If I get fired... by monoqlith · · Score: 4, Insightful

    do I get to keep my stock options?

    Because, honestly, that seems like the better option here. Not to mention the money I will recoup when I sue you for wrongful termination.

    1. Re:If I get fired... by Anonymous Coward · · Score: 0

      do I get to keep my stock options?

      Because, honestly, that seems like the better option here. Not to mention the money I will recoup when I sue you for wrongful termination.

      Only the shares you own via exercise of those options are yours to keep. And you can only own the shares if the options themselves are "vested". (Typically, the company can buy back vested options from you on the day you quit, but if you're holding out for that IPO pop, you don't want that.)

      If I had the misfortune to work at Zynga, and had been there long enough for my options to be fully vested, I'd exercise those options today and resign tomorrow. (LOL, I wonder if, as a non-employee, the traditional 6-month employee lockout period still applies :)

      Fucking over your employees is a bad idea in the tech industry; unlike a factory floor, your productive capital walks out the door every night.

  55. The new pets.com by jbohumil · · Score: 1

    Zynga has product that people can walk away with in the blink of an eye. After spending how many hours clicking mindlessly on games that do not materially change no matter how long you click on them, you are just a couple of days away from breaking the habit and moving on to the next click fest, or better yet, opening a book and reading something that actually is not brain numbing. Or doing gaming that is actually fun. Games are entertainment, Zynga games aren't entertaining, they depend solely on the addictive nature of the click-reward, it is a real force to be sure, but ultimately the little mini click fest games fail for lack of actual entertainment value.

    1. Re:The new pets.com by Splab · · Score: 1

      Yes, except no. Zynga plays on addiction and there is no way anyone addicted to their games just walks away.

      If you have never experienced gaming/gambling addiction you have no idea, just how hard it is to walk away from it.

    2. Re:The new pets.com by ErikZ · · Score: 1

      I have. I played a type of game like that while I was unemployeed.

      The amount of time and effort and focus it required was almost like a job.

      Then I got a job and stopped playing.

      --
      Democrats or Republicans. They are both taking us to the same place and they are not afraid of us anymore.
  56. Oh, it happens by Radical+Moderate · · Score: 4, Interesting

    I had a friend who went to work for IBM in sales, he was tearing it up, making big bucks. They upped his quota retroactively, he had to pay back part of his commissions. Can't have the new kid making more than his boss.

    --
    Never let a lack of data get in the way of a good rant.
  57. Obligatory by angularbanjo · · Score: 1

    Just goes to show you shouldn't have bet the farm on Zynga stock

  58. Ahh Crap! by Anonymous Coward · · Score: 0

    One of the members of the board of directors is the main investor in my company. I guess I can flush all my options down the toilet!

  59. That's not what TFA says by Anonymous Coward · · Score: 0

    TFA doesn't say anything of the sort. It talks a lot about THE EXECUTIVES making decisions about which employees THE EXECUTIVES feel must give back shares. TFA never tells us who THE EXECUTIVES selected.

    I think that maybe you're the one who might benefit from 'reading TFA carefully'.

  60. They want them back to give to new hires??? by Liambp · · Score: 4, Insightful

    According to the article they want to take the stock options back so they can use them to attract new employees.

    Surely the act of taking them back greatly reduces the attractiveness of any future options Zynga issues?

  61. If I had a nickel by jimmydevice · · Score: 1

    For every time I was ripped off in a business venture, I'd fill a sock and use it.

  62. Same thing as Bankers? by Kaenneth · · Score: 1

    Recall when practically everyone was demanding that bank executives give back their bonuses?

    This is exactly why I was against forcing them to cancel bonuses that they were due by contract, because I wouldn't want it happening in my industry.

    I do think those found to have commited fraud, etc. should be jail/fined, but invalidating legal contracts is a very bad thing for government to do. Basically, it's Bankruptcy.

  63. Lure Baby With Candy, Steal Candy, Repeat. by Tatarize · · Score: 1

    Awesome!

    --

    It is no longer uncommon to be uncommon.
  64. WTF is Zynga? by Anonymous Coward · · Score: 0

    Never heard of these idiots, they probably won't be around long anyway with management like that.

    1. Re:WTF is Zynga? by RockDoctor · · Score: 1
      That's the main question that came to me too.

      Zynga (/ËzÉÅÉÉ(TM)/) is a social network game developer located in San Francisco, United States.[3] The company develops browser-based games that work both stand-alone and as application widgets on social networking websites such as Facebook and MySpace.

      As of November 2011, Zynga's games on Facebook have over 200 million monthly active users.[4] Four of Zynga's games, CityVille, Texas HoldEm Poker, FarmVille,

      Ah, that piece of irritating shit.

      Question answered.

      Topic no longer of interest.

      --
      Birds are not dinosaur descendants;birds are dinosaurs, for all useful meanings of "birds", "are" and "dinosaurs"
  65. Sure Zynga I'll sell by Anonymous Coward · · Score: 1

    Sure Zynga I'll sell my shares, Just as soon as you pay the price I ask. For threatening me, that price is now DOUBLE!

  66. Option #3: drown the Madia in hot alphabet soup by Travoltus · · Score: 0

    Get real proof of this so-called Russian mafia connection, then bring in the DHS and the FBI.

    You never know when those Federal agencies will decide they're sick and tired of all the unlicensed foreign competitors in the American organized crime business.

    --
    --- Grow a pair, liberals... stop letting the Republicans bully you!
  67. Over 40 by chiph · · Score: 1

    If any of these employees are over 40, then Zynga is in for a world of hurt.
    (40+ is a protected class under EEO law)

  68. Haven't you heard? by Anonymous Coward · · Score: 0

    Yes.

  69. Perhaps I'm missing something but.... by HellYeahAutomaton · · Score: 1

    Isn't this the kind of thing that the SEC has purview over?

    If the employees approached the SEC and told them about this unconscionable move against them, couldn't they make it difficult to allow Zynga to IPO until the situation is remedied?

  70. Zynga addiction by Compaqt · · Score: 1

    Just wondering as someone not really into either FB or Zynga: what exactly is addicting about their games, as in comparison to other games (on Lin/Mac/Win/Xbox)?

    If you're just wasting time, I guess Frozen Bubble is addicting, too. Is it like that?

    --
    I'm not a lawyer, but I play one on the Internet. Blog
    1. Re:Zynga addiction by jbohumil · · Score: 1

      It has an addictive quality, I think it is related to the timers. You get to click on things and earn certain bonuses or items necessary to go click on other things. There are limits to these bonuses based on time, they replenish at a certain rate that is slower than you wish it was. You could opt to spend cash to get the items, and that's where they make money, or you can wait until they replenish automatically. The element of waiting/reward cycle is I think where the addictive pattern is centered, but it is easy to shake off when something new comes around to fill the time you used to spend moving your mouse around clicking on things. The difference in game over time is actually very little if anything, in order to make room for both the money spending players, and the non money spending players, other wise the players who spent money would totally dominate. As a result the games never really materially advance, there are just more things to click with different pictures on them. Ultimately it is extremely boring.

  71. DSL? by fireylord · · Score: 1

    DSL technology is way more than ten years old...
    http://en.wikipedia.org/wiki/Digital_subscriber_line

  72. Think Anonymous will respond? by ubrgeek · · Score: 1

    They've been quite vocal lately. (And yes, for the Anonymous Cowards that reply to this post, you're very witty by half.)

    --
    Bark less. Wag more.
  73. Threat of termination illegal in renegotiation? by Kamiza+Ikioi · · Score: 1

    IANAL, but I've heard that renegotiating salary under threat of termination is in itself illegal. That certainly sounds good, but are there any lawyers that can give us some insight?

    --
    I8-D
  74. This guy is an idiot. by TheSpoom · · Score: 1

    Just fire the non-perfomers. You get the non-vested stock back anyway; that's what it means to be non-vested.

    --
    It's better to vote for what you want and not get it than to vote for what you don't want and get it.
    - E. Debs
  75. How is that not by Anonymous Coward · · Score: 0

    How is that not outright illegal?

  76. Charlie Ayers, Google Chef by benro03 · · Score: 1

    Not sure if this has been posted, but the "Google Chef" they're talking about is Charlie Ayers. Here's a little on him from Wikipedia:

    Charlie Ayers is the former executive chef for Google. His work there was widely publicized in the media, and David Vise's corporate history The Google Story contains an entire chapter about him called "Charlie's Place." By the time he left Google in 2006, Ayers and his team of five chefs and 150 employees were serving 4,000 daily lunches and dinners in 10 cafes across the company's headquarters campus in Mountain View, CA. Ayers reportedly earned $26 million (USD) from his Google stock options.

    Ayers began his professional career in New Jersey working for Hilton Hotels, at their Meadowlands and Parsippany locations in New Jersey. Later he left Hilton to attend culinary school in Providence, RI at Johnson & Wales University. He cooked at several restaurants in the Providence and Boston areas, before moving to California and serving as a chef for the Grateful Dead.

    Following his time working for Google, he started Calafia Café / Calafia Market a Go Go. The first restaurant opened 20 January 2009 in the Palo Alto, CA Town & Country Village shopping center.

    http://en.wikipedia.org/wiki/Charlie_Ayers

    This guy isn't just a cook, he's the equivalent of either a Vice President or Senior VP in terms of corporate structure. Damn straight he deserves his options.

    And I doubt that Zynga has someone like him. They're equating one of their longtime employees to the guy who runs the snack bar in the building.

    --
    I am Homer of Borg, resistance is - Ooo Donuts!
  77. I work in the bay area as a software developer by Anonymous Coward · · Score: 0

    And Zynga just joined my shortlist of companies I'll never trust, work for, or do business with here.

  78. Re:Are these people serious? Read the article link by Anonymous Coward · · Score: 0

    I'd never want to work for such a company, how much ever they offerred in compensation.

  79. Good luck with that golden rule thing... by tlambert · · Score: 1

    Good luck with that golden rule thing...

    This reminds me of "the Golden Rule" that I try to live by: "Treat others as you would like to be treated."

    The first Methane-breathing alien you encounter and treat as you'd like to be treated and place in a reducing Oxygen atmosphere will likely result in an interstellar war.

    http://www.rfreitas.com/Astro/MetalawInterstellarRelations.htm ...or in simple terms: Do unto others as they would have you do unto them".

    This leads to things like people with terminal illness being allowed to choose to proactively end their lives, and cryonicists being able to get themselves frozen before their glial cell carcinoma eats all the neuronal connections which encode the information that defines their self, but hey, those are things that should be allowed anyway.

    -- Terry

  80. They're both wrong! by Anonymous Coward · · Score: 0

    It's BS that Zynga is pulling this from it's core employees. Cause risk at a startup in Silicon Valley today is... somewhat risky.

    AND it's BS for people supporting C. Ayers (the defense) in the Google Chef scenario. Cause risk at a startup in Silicon Valley back in 1998 was... a sure thing...

    Context people! Keep the context straight and not Internet cherry picking information as both sides appear to be doing in this arguments.

  81. Typical sensationalist bs by Anonymous Coward · · Score: 0

    instead of firing someone and taking back all their un-vested stock (routine practice), pincus gave them another chance in a demoted position and reduced their un-vested stock.

    Explain to me how this is a) bad for the employee b) bad for the company c) evil ceo business.

    We ought to have courses in schools that teach people how to pull the few facts out of editorial opinion.

  82. Re:Are these people serious? Read the article link by AtlasAxe · · Score: 1

    It's even worse. They are telling the next guy that they lie to their employees, that dishonesty is the norm at the company, and that to join them you have to be complicit in the lying they did to the previous employees.

  83. Not unusual to be run like this by Anonymous Coward · · Score: 0

    Sorry for the anonymous post, but I still have legal threats against me on this issue. From early 1997 to early 2000 I worked for a domain registrar in the USA that was taking over a ccTLD in the height of such things, to market it within the US as an alternative to the traditional "big 3" domains. They also were a telecom company selling traditional and non-traditional telecom services. This company was a private corporation and had given stock and stock options to its "most valuable employees" in the prior two years, where I was instrumental in moving from the PC-based world to the internet world. Along about late 1999, said company decided it wanted to focus on JUST the domain portion of the business and sell the telecom portion. In order to do that, however, it had to get back all those shares of stock it had issues & stock options for 100% control, or the buyer wasn't interested. Typical greed b*****ds, they had no desire to compensate any of us for the stock or options. Instead they decided to give us a Promissory Note. Yeah, you know where this is headed. Well, I threw a monkey wrench in their plans by signing my agreement and Note "Signed Under Protest" so that it would become part of the permanent record of the same. Of course the President *immediately* called me into his office to "discuss" the issue, and guaranteed me personally that no matter what, I would be paid the amount due, even if the company when belly up. Here we are, over a decade later. The original company that wrote the Promissory Note still exists. They are still making a profit every year but, to my knowledge, still has not paid out a single cent to any of the employees that they strong armed into signing those documents so they could sell the telecom business. The owners, both of them, are still raking in the dough and living the high life - Ferraris, mansions and all. The telecom business? I moved to them when the sale happened - turns out they made it a condition of the sale that I become their employee. Nice to be recognized, I guess. Within 3 years they were losing their behinds mostly in part because they decided that the business was a good font for laundering illegal credit card charges. When I found out about that, I quit my job and reported them to the authorities. The company itself no longer exists except in name, as it was picked up for pennies on the dollar in a bankruptcy sale this past January. Moral of the story: Corporate Executives are out for one thing and one thing only: themselves. If you believe anything else, you are a fool.

  84. Dear employee by cas2000 · · Score: 1

    Hand back the salary I've paid you (plus interest) or you're fired.

  85. Fact vs. ur illogical offtopic adhominem attacks by Anonymous Coward · · Score: 0

    IF Linux = secure, as is often said here on this site, explain these (recent verifiable data on Linux security breaches)

    KERNEL.ORG COMPROMISED:

    http://linux.slashdot.org/story/11/08/31/2321232/Kernelorg-Compromised

    ---

    Linux.com pwned in fresh round of cyber break-ins:

    http://www.theregister.co.uk/2011/09/12/more_linux_sites_down/

    ---

    Mysql.com Hacked, Made To Serve Malware:

    http://it.slashdot.org/story/11/09/26/2218238/mysqlcom-hacked-made-to-serve-malware

    ---

    Linux's showing in CA's breached recently too? Ok:

    http://uptime.netcraft.com/up/graph?site=StartCom.com

    http://uptime.netcraft.com/up/graph?site=GlobalSign.com

    http://uptime.netcraft.com/up/graph?site=Comodo.com

    http://uptime.netcraft.com/up/graph?site=DigiCert.com

    Those CA's (for SSL) got breached & RUN LINUX (StartCom, GlobalSign, DigiCert, & Comodo)... per these articles verifying that:

    http://itproafrica.com/technology/security/cas-hacked/

    and

    http://it.slashdot.org/story/11/10/28/1954201/four-cas-have-been-compromised-since-june

    ---

    * Additionally, there's also ANDROID'S (yes, it's a Linux, & uses a Linux kernel) "fine security track-record" (lol, NOT) also...

    (Why's that, as to all of the above? LOL, we KNOW why... see my ps below!)

    APK

    P.S.=> All those years of hearing the typical FUD of "Linux = SECURE, & Windows != Secure" around here on /., only to see recent history (VERY recently in those above no less) show QUITE OTHERWISE!

    ... apk

  86. Such an "intelligent reply" (lol, NOT) by Anonymous Coward · · Score: 0

    Especially from a book reader in you ('See Dick and Jane run' type of books what you read apparently at best/most). I can see you "muddling your way" through those, laboriously, lmao! Especially since you're dumb enough to be into the "swiss cheese level security" (lol) Linux offers and is being exposed for lately in its own sourcecode repository being breached at kernel.org (unbelievably bad, now it can't be trusted in its code period for linux itself), linux.com itself also being breached, as well as mysql.com too plus 4 CA's for SSL communications security (very bad). Each runs linux. Android tops that off nicely with its "fine security track record" (not) too, lol. Each of those is recent history and you were stupid enough to be sucked into the fud bs that Penguins spread that "linux = secure/windows != secure" and now we all see the truth (that linux hid behind lack of usage/security by obscurity, only - nobody targetted it, nobody used it, and basically on PC desktops still don't!). Ha, makes me laugh: It's a freebie and those usually win over paywares, but, only IF the freebie is as good. Obviously, it's not as good as Windows in the eyes of users out there by the millions. The only reason it has a niche as a server is that it costs nothing, well, not until you get security breached that is (per above evidence), then the lawsuits come, lol!

  87. Scumbags vs scumbags. by Anonymous Coward · · Score: 0

    This is happening to Zynga employees? So what. these are people who have been stealing other people's stuff for years. They are the ones who built a giant by ripping off the little guy and crushing them.
    They signed on to commit crime and if they had no idea that that is what they were signing up for as soon as upper management told them to rip off popular games, they knew that is what they signed up for.
    If they were so stupid to think "we get paid to do bad things to other people, our management would never do a bad thing to us!" they are getting what they deserve.