Yesterday, we reported on Microsoft’s cost of acquiring business social media company LinkedIn being inflated by $6 billion given stiff acquisition competition. As with all such business dealings, there are winners and losers, and while Microsoft lost some money given the competition for LinkedIn, some of the latter company’s officers made out quite well.
According to VentureBeat, the biggest winner was naturally LinkedIn founder Reid Hoffman, who will make $2.9 billion from the sale of his stock to Microsoft. He’s not the only one, however. LinkedIn CEO Jeff Weiner will be taking home a cool $88 million in income to go with his own initial $132 million and change thanks to his own stock sale.
As VentureBeat reports, between Weiner has a number of ways to make money. He will receive an annual salary of $815,000, a performance bonus of $25 million on being hired, various stock options and performance and incentive clauses, and an annual cash bonus. All told, that could come out to $88 million in on-going income.
VentureBeat points out that even if Weiner isn’t retained at Microsoft going forward, there’s a pretty significant golden parachute available as well. And so, while Weiner will be held accountable for his performance, he’s going to be just fine financially if his performance isn’t up to snuff.
Clearly, it’s a good thing to found a company like LinkedIn, and to be an officer of such a company when it’s acquired by another. We’re hopeful that the deal will pay dividends for Microsoft’s own efforts to position itself as the premier “cloud-first, mobile-first” productivity solutions company, but regardless, the folks over at LinkedIn should do just fine.Further reading: Acquisitions, Jeff Weiner, LinkedIn, Microsoft