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Zynga to give stock options to all full-timers to retain staff

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Zynga stock declines
Zynga stock declines

Zynga has offered equity grants and stock options to all its full-time staff in light of a dip in the company's earnings and share prices, Bloomberg reports.

Zynga has offered equity grants and stock options to all its full-time staff in light of a dip in the company's earnings and share prices, Bloomberg reports.

The company has previously offered stock options and cash bonuses to employees each quarter, but according to a Zynga insider who spoke to Bloomberg, this is the first time the developer has offered stock options to all full-time staff.

Arvind Bhatia, an analyst at Sterne Agee & Leach Inc. in Dallas told Bloomberg that this is a measure to prevent staff from leaving the company after the company's shares fell 70 percent since its initial public offering in December. Many of Zynga's staff were paid partly in restricted shares before the IPO, and the value of these shares has since diminished significantly.

"It's a proactive move to prevent mass exodus," Bhatia said. "It's positive for morale and I think it's the fair thing to do."

Zynga's shares had an initial public offering of $10 per share, rising to a high of $14.69 before dipping to $3.01 where it stands today.