Zynga Inc. (ZNGA:US) Chief Operating Officer John Schappert is resigning and leaving the board after he was stripped of some responsibilities at the company, the biggest developer of games played on Facebook Inc. (FB:US)’s social network.
“Mr. Schappert’s resignation from the board was not tendered in connection with any disagreement with the company on any matter relating to the company’s operations, policies or practices,” San Francisco-based Zynga said today in a regulatory filing.
Schappert had lost his role overseeing game development in a reorganization that was aimed at reviving growth and making more money from mobile services, people with knowledge of the matter said last week. Chief Executive Officer Mark Pincus embarked on the overhaul in early July, the people said, at the close of a quarter marked by slowing sales growth and a drop in demand for virtual goods.
Schappert, lured away last year from Electronic Arts Inc. with a pay package worth $42.8 million, had lost support within the company and taken some of the blame for its underperformance, the people said.
“John has made significant contributions to the games industry throughout his career and we appreciate all that he has done for Zynga,” Pincus said today in an e-mailed statement. “John leaves as a friend of the company and we wish him all the best.”
Zynga shares (ZNGA:US) fell 2.1 percent to $2.95 at the close in New York. The stock has dropped 71 percent since the company’s initial public offering on Dec. 15, when it sold shares at $10 each.
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