LinkedIn changes employee bonuses for 2027: What workers need to know

# LinkedIn Shifts Annual Employee Bonuses to Individual Performance Starting in 2027

LinkedIn is revising its annual employee bonus structure to place greater emphasis on individual performance, with the new policy scheduled to take effect in fiscal year 2027. The Microsoft-owned professional networking company will remove overall company performance as a direct factor in calculating annual corporate bonuses, according to an internal memo reviewed by Business Insider.

Under the existing compensation model, annual bonuses are determined equally by two factors: the company’s overall performance and an employee’s individual contributions. Each component accounts for 50% of the final payout. Under the revised policy, individual performance will become the sole factor used to determine bonuses for employees covered by the corporate bonus program.

The change reflects LinkedIn’s stated commitment to rewarding employees according to their individual impact and contributions. In its internal communication, the company emphasized that recognizing personal performance remains central to its compensation philosophy. “At LinkedIn, we believe you should be recognized and rewarded for the impact you make,” the memo stated, describing the bonus plan as an important part of its approach to performance-based pay.

A LinkedIn spokesperson confirmed the policy update, explaining, “We’re updating our bonus plan to create a more direct connection between individual performance and bonus payouts.” The company said the revised approach is intended to establish a clearer relationship between employees’ performance and the bonuses they receive.

The policy will apply to employees participating in LinkedIn’s corporate bonus program. Sales employees whose compensation is directly tied to sales quotas will be excluded from the change, as their pay structures are based on separate performance measures.

Despite the revised calculation method, LinkedIn said employees’ target bonus levels will remain unchanged. Actual payouts, however, will continue to depend on individual performance and will not be guaranteed. The internal memo explained that stronger performance could lead to higher payouts, while weaker performance could result in lower payments.

Managers will retain responsibility for evaluating employees’ contributions and determining their bonus payouts based on performance throughout the fiscal year. LinkedIn also clarified that removing company performance from the calculation will not alter the underlying funding structure of the bonus pool.

Although overall business performance will no longer directly determine individual corporate bonus amounts, LinkedIn stressed that the company’s broader business results will remain an organizational priority. The adjustment changes how bonuses are allocated to employees rather than eliminating the importance of the company’s financial and operational performance.

The move comes as technology companies increasingly reassess employee evaluation systems, compensation policies and operating expenses. Across the industry, employers are seeking to establish clearer distinctions between individual contributions and reward employees more directly for their performance.

Microsoft has also refined its employee performance review system this year, seeking to create sharper distinctions in employee evaluations. LinkedIn’s bonus policy overhaul follows earlier cost-cutting measures, including targeted layoffs and reductions in marketing spending and nonessential office space.

By making individual performance the primary basis for annual corporate bonuses, LinkedIn is placing greater responsibility on employees to demonstrate measurable contributions. The revised structure also gives managers a more direct role in connecting performance assessments with compensation as the company continues to adjust its approach to workforce management and operating costs.