Zynga said in a regulatory filing in June that it lost Nasdaq compliance after two independent directors stepped down. The company also announced in April LinkedIn (LNKD) co-founder Reid Hoffman and DreamWorks (DWA) CEO Jeffrey Katzenberg would not run for re-election as directors.
A public company must have majority independent directors under NASDAQ rules. Dugan will serve as the second female director on Zynga's board along with former Yahoo! YHOO executive Ellen Siminoff. Zynga has nine directors after Dugan's inclusion.
Dugan served as vice president of engineering and head of the Advanced Technology and Projects group at Google (GOOGL). She previously served as the first female director of the Defense Advanced Research Projects Agency, or DARPA. Dugan's team at Google is currently working on projects such as temporary electronic tattoos that can unlock smartphones.
The stock was up 3.82% to $3.12 at 3:07 p.m.
Separately, TheStreet Ratings team rates ZYNGA INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZYNGA INC (ZNGA) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself."