TightWind is written by Kyle Baxter. Stay Hungry. Stay Foolish.

Zynga is trying something a little… Unorthodox: they’re demanding certain employees return stock ahead of their IPO. Here’s management’s reasoning:

Although Zynga’s decision might be met with some criticism, the firm’s executives reportedly justified their strategy by saying it was best for the company. With the unvested shares, the executives believed they could attract more top talent with the promise of stock.

Perhaps they should consider what taking back stock already awarded to employees under the threat of termination will do to current employee morale and to anyone even considering working for Zynga.

Maybe they awarded too much stock to employees early on. Fine—either find a way to get some of it back that’s mutually beneficial and doesn’t make employees feel like they’re getting screwed, or suck it up, move on, and find another way to reward new hires.

Great example of not considering consequences of your actions, though.