They should strike and demand the board of directors, as their proxies, hold management accountable to honor the equity rights already in place. This is a despicable, underhanded maneuver.
Matthew Nelson on wsj.com
I'd argue that the "down sizing" of options though is something that should be done when the role is downsized, not months/years later when the CEO is having buyer's remorse. That's, I suspect, what feels slimy to people. Especially if the demotion is politically motivated, which happens a lot at the executive level.
melindybyerley on cnn.com
I wonder if the market will consider Zynga's IPO less valuable because of this executive decision and the bad publicity. That would hurt the employees a second time.