If I worked for Zynga and I saw co-workers who were under performing heavily rewarded I'd find that pretty de-motivating. It seems to me this has been misreported, if your not performing in your role and you get fired you'd lose the unvested stock anyway so by offering a new position and cutting your stock you are given a second chance.

Without knowing how the performance is being judged and what the communication with the staff is like its impossible to really pass comment, do we really think that employees are given no prior warning and suddenly they are re-housed and their stock cut? Seems a little far fetched to me, especially before an IPO where the press are going to be hot for you anyway.