Meta Executives’ Bonuses Soar Amid Recent Layoffs

Meta executives are set to receive significantly larger bonuses this year, following a recent corporate filing. This announcement comes a week after Meta laid off 5% of its workforce, targeting its lowest performers, and reduced its annual stock option distribution by about 10% for thousands of employees.

The company announced on Thursday that it had approved an increase in the target bonus percentage for its annual bonus plan for executives.

Under the new plan, Meta’s named executive officers could earn a bonus of 200% of their base salary, up from the previous 75%. Notably, the updated bonus plan does not apply to Meta CEO Mark Zuckerberg.

The change was approved by a committee from Meta’s board of directors on February 13, after it was determined that the target total cash compensation for its executives was below the 15th percentile compared to peers.

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With the new increase, the target total cash compensation for executives, excluding the CEO, is now at approximately the 50th percentile of peer group compensation.

Despite these changes, Meta shares have risen more than 47% over the past year, reflecting strong investor enthusiasm for the company’s growing sales in digital advertising and potential returns from its AI investments.

The company reported a 21% year-over-year increase in fourth-quarter revenue, reaching $48.39 billion.

CNBC