LinkedIn is overhauling employee bonuses, memo shows
LinkedIn is eliminating company performance from its annual employee bonus calculations, tying payouts entirely to individual performance in 2027.
LinkedIn is revamping its employee bonus structure, as revealed in an internal memo obtained by Business Insider. The professional networking platform will transition to awarding bonuses based solely on individual performance in 2027, marking a shift away from a 50/50 split between company and individual performance.
The move reflects LinkedIn's pay-for-performance philosophy and aims to create a stronger link between employee contributions and bonus payouts. However, individual bonus targets will remain unchanged, and the update excludes employees with sales quotas.
LinkedIn's decision comes amid a broader trend of major tech companies increasing performance pressure on employees, tying more compensation to individual achievements. Microsoft, LinkedIn's parent company, recently overhauled its performance review system to tighten performance distinctions.
The change follows a period of cost-cutting at LinkedIn, which included layoffs and reductions in non-essential spending. LinkedIn CEO Daniel Shapero emphasized the need to operate more profitably and redirect investments toward core priorities.
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