LinkedIn CEO's Pay Isn't Based on Stock Price But on "Ability to Inspire" Others
LinkedIn detailed its 2011 executive compensation plan today, and it's a joke: None of CEO Jeffrey Weiner's incentive compensation will be linked to the price of the company's stock. Weiner hasn't received any equity awards from LinkedIn since 2009, according to LinkedIn's previous filings.
The company said it hopes to get $45/share when it launches its IPO on May 19, fueling the bubble-like aspect of tech stocks.
Weiner's compensation does not specifically give him an incentive to reward anyone who buys LinkedIn stock. Aside from his base salary, he is compensated in two ways:
- 50 percent based on the company's revenue, members, unique visitors, page views and EBITDA.
- 50 percent based on "individual performance."
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But the "individual performance" aspect is even worse. It's based on mushy characteristics such as:
Leadership: Ability to inspire others to achieve shared objectives and uphold our culture and values.Given that Weiner is also a member of LinkedIn's board of directors, and that board only has seven people on it, how likely is it that those directors will not end up feeling "inspired" by Weiner's performance come December?
None of Weiner's compensation will be linked to the performance of his stock, and Weiner has been given no equity grants since 2009, the company's disclosures say. The company declined comment, citing its pre-IPO quiet period.
The members of the LinkedIn compensation committee responsible for this curious arrangement are directors George "Skip" Battle, Leslie Kilgore and Stanley J. Meresman. All three of them received $200,000 or more in LinkedIn stock last year.
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Image: Weiner's LinkedIn photo.