

John Schappert, Zynga COO, Resigns - bryanh
http://edgar.sec.gov/Archives/edgar/data/1439404/000119312512344267/d393776d8k.htm

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mcphilip
Schappert successfully dumped (at least) $3.9 million in stock earlier this
year. Last week he was stripped of responsibility for overseeing new games.
Sounds like as good a time as any to leave.

[http://venturebeat.com/2012/08/01/zynga-more-lawuits-coo-
dem...](http://venturebeat.com/2012/08/01/zynga-more-lawuits-coo-demoted/)

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ChuckMcM
Yup, probably got to keep half of it after taxes, and of course once you're no
longer an insider it becomes easier to sell any remaining holdings without
triggering SEC rules.

I think he is still named in a couple of the class action suits though, so its
not like he will have a lot of free time. I am morbidly curious about how
lawyer's fees are handled. Normally if you're being sued in connection with
something you did for the company, the company hires a lawyer to represent
you, but how does that work if you're not working the company any more?

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vampirechicken
Half of it? Is he not in the US? Isn't US capital gains tax 15%? Surely that
means he kept 85% after taxes.

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ChuckMcM
He held it less than a year, it is ordinary income, so 38% to the fed and 11%
to the state (49% total) and with that amount of income on the adjusted gross
income line he gets no deductions.

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vampirechicken
If I only got to keep 2 million of my four, I'd cry all the way the bank.
Thanks for the correction. I don't do Schedule D stuff anymore, so I'm not hip
to the lingo.

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aaronbrethorst
And not even two weeks ago he was talking up Zynga's prospects in the wake of
their horrendous last quarter: [http://allthingsd.com/20120727/zyngas-john-
schappert-talks-u...](http://allthingsd.com/20120727/zyngas-john-schappert-
talks-up-opportunities-after-a-shocking-quarter/)

Anyone know if this language in the 8-K is essentially boilerplate? "The
Company further noted that Mr. Schappert leaves as a friend of the Company and
it wishes him all the best."

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wilfra
Yes that is standard. It should be illegal. They said his resignation,
_effective immediately_ , had nothing to do with any disagreement over company
operations. It had everything to do with that. He was probably fired or quit
in anger over his demotion, due to his (perceived) poor performance.

How they can get away with lying to the SEC and their investors like that
boggles the mind - but it is how every company handles it. Firings are all
resignations and they never have anything to do with the company or the former
employees job performance. Everybody leaves as friends that have the upmost
respect for one another and can't wait to work together again blah blah they
just want to spend time with their kids. That they just drove their company
into the ground is a complete coincidence.

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codeka
"Effective immediately" is common for VP and CxO level positions. Remember
Marissa Mayer quit Google and started at Yahoo! _the next day_.

You're right though that "everybody is still friends" is boiler plate and
doesn't actually mean anything. Especially given how horribly Zynga is doing
right now, it seem unlikely that things are going great for the CxOs.

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beedogs
Don't worry, they have an exact clone of him ready to step in.

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smashing
Oddly, the clone is modeled after a COO from another company.

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NoPiece
Schappert was also mentioned in the EA lawsuit. He was COO of EA before he
left for Zynga, and according to the filing, "Mr. Shappert was then the most
senior executive responsible for EA's online social gaming business. The
online social gaming business divisions reported directly to Mr. Schappert,
and he was directly responsible for designing and implementing EA's
competitive strategies in the market. As such, Mr. Schappert had detailed,
internal strategic plans and development information related to EA's effort to
bring The Sims franchise to Facebook with The Sims Social."

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veloute
He used to talk exclusively to my boobs. good riddance.

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anextio
Ugh.

I hate the "bros" that inhabit many startup companies these days.

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samstave
Coincidentally, I started receding spam from OMGPOP today.

I simply replied: "F*ck Zynga"

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michaelochurch
_I simply replied: "F_ ck Zynga"

If you want to block out offensive words, you should be writing "Fuck Z*nga".

