Zynga Departures Put Independent Directors Below Nasdaq MinimumRob Golum
Zynga Inc., the online video-game company, said it’s recruiting new candidates to its board after Reid Hoffman and Jeffrey Katzenberg stepped down, putting the number of independent directors below the Nasdaq minimum.
The departure of the two directors, first announced in April, leaves Zynga out of compliance with Nasdaq Stock Market rules requiring a majority of independent directors, the San Francisco-based company said in a June 13 regulatory filing.
The company has until July 27 to submit a plan to Nasdaq outlining how it intends to regain compliance with the rule. Upon acceptance of the plan, the Nasdaq may give the company until Dec. 9 to comply, according to the filing.
“The company expects to identify and add two independent directors to the board and regain compliance with the rule in the coming months,” Zynga said in the filing.
Zynga said in an April 10 filing that Hoffman, co-founder and chief executive officer of LinkedIn Corp., and Katzenberg, CEO of DreamWorks Animation SKG Inc., wouldn’t stand for re-election.
Zynga fell 0.7 percent to $3.08 at the close in New York. The stock has declined 19 percent this year.