"I know you had a higher salary in mind, but Zynga's really going places. We're offering you some shares in the company that will be incredibly valuable once we go public. I don't want to make any promises, but when Google went public in 2004, more than 900 of its employees instantly became millionaires! So this is a potentially wealth-creating opportunity."
You have to wonder how many potential Zynga employees heard a pitch similar to this four years ago when being recruited by the social gaming company started by chief executive Mark Pinkus.
But as plans for Zynga's public offering begin taking shape, some of the company's early hires were presented with an entirely different proposal.
The Wall Street Journal has a fascinating -- and, to my mind, infuriating -- article about how Pincus (perhaps with input from the IPO's underwriters) basically has been trying to screw over long-time employees:
Early last year, as Mr. Pincus began preparing to take Zynga public, he and several other executives decided the company had doled out too many stock rights to certain people in its early days, say people familiar with the matter. The executives chose an unusual solution: They began demanding that certain employees surrender some shares or be fired.
Apparently Pincus and his braintrust fear that the "wrong" people will get wealthy from Zynga's IPO, which may come at the end of this month and could value the company at $20 billion. Heaven forbid that we end up with another "Google chef," a reference to a kitchen worker for the search giant whose stock after Google's IPO was valued at $20 million.
That's a very good point. Why should a lowly "99%er" get some of the millions from a public offering that could go to a more worthy recipient -- say, one of the wealthy Wall Street investors who are friendly with underwriters Morgan Stanley, Goldman Sachs or Bank of America/Merrill Lynch? Those people worked hard to get those free shares!
So to head off a potential catastrophe, Pincus and his fellow "worthy" executives compiled a list of Zynga workers "whose job performance might not justify their large grants" of shares. You know, the kind of thing that happens to CEOs all the time!