LinkedIn 2015 Annual Report Download - page 122

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Equity Incentive Plans
The Company has two equity incentive plans: the Amended and Restated 2003 Stock Incentive
Plan (the ‘‘2003 Plan’’) and the 2011 Equity Incentive Plan (the ‘‘2011 Plan’’ and together with the 2003
Plan, the ‘‘Equity Plans’’). As of December 31, 2015, a total of 50,814,756 shares of common stock
were authorized for the issuance of equity awards under the Equity Plans. Upon the Company’s IPO in
2011, the 2003 Plan was terminated and all shares that remained available for future issuance under
the 2003 Plan at the time of its termination were transferred to the 2011 Plan. No further equity awards
can be granted under the 2003 Plan. As of December 31, 2015, 1,146,112 options to purchase
common stock granted under the 2003 Plan remain outstanding. Any of these shares that expire, are
forfeited, are repurchased by the Company or are otherwise terminated will become available under the
2011 Plan. As of December 31, 2015, the total number of shares available for future grants under the
2011 Plan was 2,131,126 shares, including shares transferred from the 2003 Plan.
Under the 2011 Plan, the Company has the ability to issue incentive stock options (‘‘ISOs’’),
nonstatutory stock options (‘‘NSOs’’), stock appreciation rights, restricted stock, RSUs, performance
units and/or performance shares. The ISOs and NSOs will be granted at a price per share not less
than the market value of the underlying stock at date of grant. Option grants are generally NSOs and
granted only to certain employees and members of the Company’s Board. Options granted to existing
employees generally vest monthly over a four-year period, while options granted to new employees
vest over a four-year period with 25% vesting at the end of one year and the remainder vesting
monthly thereafter. Options granted generally are exercisable up to ten years. RSUs generally vest
over a four-year period with 25% vesting at the end of one year and the remainder vesting quarterly
thereafter.
Employee Stock Purchase Plan
The Employee Stock Purchase Plan (the ‘‘ESPP’’) allows eligible employees to purchase shares of
the Company’s Class A common stock at a discount through payroll deductions of up to 10% of their
eligible compensation, subject to any plan limitations. The ESPP provides for six-month offering
periods, and at the end of each offering period, employees are able to purchase shares at 85% of the
lower of the fair market value of the Company’s Class A common stock on the first trading day of the
offering period or on the last day of the offering period. As of December 31, 2015, a total of 3,500,000
shares of common stock were authorized for the issuance of equity awards under the ESPP.
Employees purchased 296,411 shares of common stock at an average exercise price of $166.31 in
fiscal 2015. As of December 31, 2015, approximately 2,327,377 shares remained available for future
issuance.
RSU Activity
A summary of RSU activity in 2015 is as follows:
Weighted-
Average
Number of Grant Date
Shares Fair Value
Unvested—December 31, 2014 .................................. 5,140,627 $176.78
Granted ................................................... 3,903,942 243.33
Released .................................................. (2,220,663) 176.17
Canceled .................................................. (687,204) 193.29
Unvested—December 31, 2015 .................................. 6,136,702 $211.77
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