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Companies like Google, Amazon and Facebook paid out about 15 percent of operating income, or well under 10 percent of revenue. LinkedIn paid out $510 million in stock-based compensation last year over the last two years, that stock-based compensation represented a whopping 96 percent of operating income, or 16 percent of revenue, according to Mr. The company purposely strips out the cost of stock-based compensation, which has the effect of turning losses into gains. That’s because LinkedIn steers investors to focus on what’s known as its adjusted Ebitda, or non-GAAP earnings. You wouldn’t know that if you only glanced at LinkedIn’s news releases. But a few rules of thumb can stave off some nasty surprises. Tips for Investors: When you invest and where matters for taxes.May I Speak to a Human?: Younger investors who are navigating market volatility and trying to save for retirement are finding that digital investment platforms lack the personal touch.2023 Predictions: There are plenty of forecasts coming for where the S&P 500 will be at the end of the year.Value and Growth Stocks: Eight tech giants are no longer “pure growth” stocks, while Exxon and Chevron are, according to a new study.Our Coverage of the Investment World The decline of the stock and bond markets this year has been painful, and it remains difficult to predict what is in store for the future. LinkedIn’s employees are paid largely in stock, and therein lies the rub: Around the company’s new 26-story skyscraper that opened in downtown San Francisco in March, as well as the corporate headquarters in Mountain View, Calif., there have been persistent whispers about whether LinkedIn could retain its top talent as the marketplace clobbered their incomes. The rapid devaluation has posed more than just a problem for investors. The share price had hovered at $225 at the beginning of 2016 a month later it briefly got close to $100. On one grim day in early February, LinkedIn’s stock price plummeted more than 40 percent after it forecast weaker-than-expected growth for the year.

That would be the company’s struggling stock price and its reliance - some might say overreliance - on stock-based compensation. Jeff Weiner, LinkedIn’s chief executive, wrote a lengthy memorandum to his employees Monday morning, ticking off a list of reasons behind the surprise decision to sell the company to Microsoft for $26.2 billion: Most important, he said, was the heft that Microsoft gives LinkedIn “to control our own destiny.”īut there may have been another reason that he left unspoken.