LinkedIn is overhauling employee bonuses, memo shows
LinkedIn is shifting its annual bonus structure for 2027 to be based entirely on individual performance rather than a mix of company and individual metrics. This move aligns with broader trends among major tech companies to increase performance pressure on staff.
Why it matters
Changes in compensation models at major tech firms signal a shift toward more aggressive performance management and cost-efficiency in the industry.
LinkedIn Illustration by Klaudia Radecka/NurPhoto via Getty Images LinkedIn is changing how it awards employee bonuses. Bonuses in 2027 will be based solely on individual performance, instead of 50% company performance. Major tech companies have been ramping up performance pressure on employees. LinkedIn is overhauling how it awards annual corporate bonuses, according to an internal memo viewed by Business Insider. The Microsoft-owned professional social network currently awards bonuses as a combination of company performance (50%) and individual performance (50%). Starting in 2027, employees' end-of-year bonuses will be based solely on their individual performance during the fiscal year. "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."
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