LinkedIn is overhauling employee bonuses, memo shows

LinkedIn is overhauling how it awards annual corporate bonuses, according to an internal memo viewed by Business Insider.

"At Linkedin, we believe you should be recognized and rewarded for the impact you make," the memo states. "That's at the heart of our pay-for-performance philosophy, and our bonus plan is an important part of how we recognize and reward you for your contributions."

Bonus targets will remain unchanged and the new policy excludes employees with sales quotas.

The change shifts compensation away from a model in which employees shared in the company's financial success and gives managers greater influence over bonus decisions to incentivize top performance.

LinkedIn's parent company Microsoft has this year overhauled its performance review system, making performance distinctions significantly sharper.

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LinkedIn CEO Daniel Shapero told employees at the time that the company needed to operate more profitably while redirecting investments toward priorities such as infrastructure.

At Linkedin, we believe you should be recognized and rewarded for the impact you make. That's at the heart of our pay-for-performance philosophy, and our bonus plan is an important part of how we recognize and reward you for your contributions.

With that in mind, I want to share a change we're making to our bonus plan beginning in FY27.

Before, bonus payouts were determined by a combination of company performance (50%) and individual performance (50%).

What isn't changing: Your bonus target. Bonus targets remain targets, not guaranteed payouts.

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