(Image Source: Bloomberg)

BY ADAM FALK

Is Zynga playing games with employees' stock? The Wall Street Journal reported Thursday, the gaming group is demanding certain employees surrender some of their shares or face being fired.

WSJ’s Shayndi Rice reports from Silcon Valley explaining Zynga CEO Mark Pincus’ reported plan.

SHAYNDI RICE: “He created a list that he called his ‘MIA List.’ And that referred to employees that had a very large amount of equity but also that he felt were not contributing their fair share to the company. … some people said, ‘OK, we’ll renegotiate the equity.’ And some people left.”

The problem is stock is how startups entice employees. The idea:  Join us and you’ll be rewarded when we go public. So, lose shares, lose money later.

Following The Wall Street Journal report, Pincus sent a note to employees dismissing the story and saying Zynga is and has always been a meritocracy. The New York Times’ Dealbook has the statement...

“‘The Wall Wtreet Journal posted a story last night (copied below) which paints our meritocracy in a false and skewed light. The story is based on hearsay and innuendo which is disappointing but is to be expected as we move towards becoming a public company.’”

Fortune blogger said WSJ’s facts were correct, but its interpretation is all wrong.

“...this isn't Major League Baseball, where the Boston Red Sox are stuck paying Carl Crawford $20 million per year even if he proves no better than a backup. It's a non-unionized startup, where the CEO is well within his rights to simply fire an under-performing employee (and recover unvested options). In fact, that's what happens at most companies.”

But is Zynga’s move really that common? Mashable reports.

“It’s definitely an unusual practice and one likely to raise controversy, especially before the company’s IPO. After Zynga goes public, it will likely have to implement clear and transparent rules and regulations on how it rewards — and punishes — the “citizens” of its meritocracy.”

And there’s the major complication. No one is worried users will stop playing Farmville, Cityville or MafiaWars, CNET says the concern is with potential buyers of Zynga stock.

“That report cropped up at the worst possible time for Zynga. … [G]iven the state of the IPO market right now, worrying about consumer reaction to an employee policy isn't so desirable.”

Zynga’s much anticipated initial public offering is expected in mid-November.

Transcript by Newsy.