LinkedIn CEO shares $14m bonus with staff

LinkedIn CEO Jeff Weiner has taken the unusual decision to share his $14m bonus among his employees to boost morale following a stock plunge

 
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Jeff Weiner, CEO of LinkedIn, has decided to share his $14m bonus with his staff, in an attempt to boost morale

According to Re/code, the CEO of business networking platform LinkedIn, Jeff Weiner, is donating his annual stock grant to his staff. With share prices in the company plummeting by more than 40 percent, Weiner was compelled to make up for the decline by distributing his $14m bonus to employees.

Re/code, the technology site that first revealed the news, found Weiner had decided to forgo his stock bonus for the first time in order to boost morale at the company, which faces another difficult year ahead.

LinkedIn’s stock price had plunged by 43 percent in just one day following reports of its earnings for the last quarter of 2015. While last year’s performance was somewhat expected, the $3.6bn forecast for this year was lower than the $3.9bn predicted by analysts at the Wall Street Journal. Experts believe that the low expectations for 2016 are behind the biggest stock drop since the company went public in 2011.

Despite having over 400 million users, only a quarter use the site every month. As such, LinkedIn’s number of monthly active users (MAUs) is dwarfed by that of competitors Twitter and Facebook (around 400 million and 1.5 billion respectively). That said, LinkedIn is the only platform of the three that actually charges for membership, which earned the company $138m in the last quarter.

In any case, if the business is to pick up its earnings, increasing the number of MAUs is key, which involves creating more value and engagement for its broad base of users. Although the company will take on various challenges this year, with Weiner providing invaluable encouragement to his team, it would seem that he is prepared to take drastic measures to make this a successful year for the business networking platform.