LinkedIn Founder Could Net $855 Million in Thursday’s IPO

LinkedIn founder Reid Hoffman could net roughly $855 million, and CEO Jeffrey Weiner could be worth as much as $103.5 million, when the company goes public Thursday, according to documents filed with the SEC.
Hoffman owns a total of 19,066,032 shares in the company. With the share price estimated to be as high as $45, he will easily net more than half a billion dollars. Weiner, a former Yahoo executive who joined LinkedIn in 2009, holds 2,322,726 shares, or 2.5% of the shares, compared to Hoffman’s 21.2%.
Others benefiting the most from tomorrow’s IPO include “entities affiliated with Sequoia Capital,” who will net $588 million at a $35 share price and their counterparts at Greylock Partners and Bessemer Venture Partners, who will get about $490 million and $158 million, respectively.
The documents also show that Weiner was paid $541,436 in salary and bonuses in 2010. That figure, which includes a $290,194 bonus, will likely increase in 2011; his base salary is already set to jump to $450,000.
Half of Weiner’s bonus is based on the company’s revenues, unique visitors, members, page views and earnings before taxes, depreciation and amortization (ebitda). The other half is based on the board of directors’ judgement of his ability to lead. However, it’s worth noting that Weiner is also a member of LinkedIn’s board, and there are only seven people on it.


Popular Posts