What is the secret to keeping your employees happy when your market value is plummeting and your share prices are collapsing at an alarming rate?
Well, you can start with giving away millions of dollars in stock to them, obviously.
Business moguls often give tedious Ted Talks on new and psychological ways to boost employee morale, but it seems the entire thing is much more straightforward than everyone makes it out to be: Throw cash at workers.
For instance, LinkedIn Corporation CEO Jeff Weiner’s solution to keep his staff happy is rather simple — he is paying them more even if it means a pay cut for himself.
It’s no secret the company’s market value is in a steady decline. In fact, last month, LinkedIn’s stock prices plummeted by about 43 percent in just one day. In situations like this, it’s only natural for employees to feel demotivated. However, Weiner is trying to soothe their worries away and keep them from jumping ship for a profitable company, like Facebook, by giving them his entire annual $14 million bonus.
“Jeff decided to ask the compensation committee to forgo his annual equity grant, and to instead put those shares back in the pool for LinkedIn employees,” said LinkedIn representative Joe Roualdes.
Although LinkedIn’s decision to share the stock bonus with employees is surely welcome by the workforce, the company isn't the first tech firm to take such a step.
Last year in October, Twitter CEO Jack Dorsey gave his employees a third of his stock award, which was reportedly worth about $200 million.