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This was a very kind gesture. But there is no way this gift would remotely make up for the value loss experienced by the employees. According to LinkedIn's sit
by antiviral 11y ago
This was a very kind gesture. But there is no way this gift would remotely make up for the value loss experienced by the employees.
According to LinkedIn's site, they have 9,200 employees:
$14 MM stock grant/9,200 employees = $1,521 per employee
In order for this grant by the CEO to fully make up for the amount lost by employees in their recent stock crash, they would have had to have no more than $3,804 of LinkedIn stock ($1521/.40). This seems quite low.
According to LinkedIn's 10-K, LinkedIn has 6.1 MM RSUs outstanding, implying 663 shares per employee. The average amount lost per employee would therefore be:
($272(LNKD high) - $119(current stock price))*663 = $101,439
In other words the CEO's stock gift to employees would only make up 1.5% (1521/101,439) of the total loss from the recent crash.
There are many reasons other than money to work somewhere: how rewarding the work is, how much you enjoy working with your team, and the impact you are having on the world. Those are things that this kind of analysis would not capture.