Meta raises executive bonuses to 200% amid layoffs, cost-cutting measures

The announcement to raise bonuses comes just a week after Meta began laying off 5 per cent of its workforce, a move the company attributed to targeting underperforming employees

Meta executives are set to receive higher bonuses this year following a corporate filing on Thursday that detailed an adjustment to the company’s executive bonus plan. Under the revised structure, Meta’s named executive officers will now be eligible for bonuses amounting to 200 per cent of their base salary, a sharp rise from the previous 75 per cent, according to a report by The Financial Express.  

 

However, the changes do not apply to CEO Mark Zuckerberg, according to the filing. The decision was approved by a committee of Meta’s board of directors on February 13, after determining that executive compensation was “at or below the 15th percentile” compared to similar positions at competing firms. With the revised structure, total target cash compensation for the company’s top executives — excluding Zuckerberg — has been brought in line with the 50th percentile of its industry peers.  

 

 

This announcement comes just a week after Meta began laying off 5 per cent of its workforce, a move the company attributed to targeting underperforming employees. Additionally, a Financial Times report released on Thursday revealed that Meta has reduced its annual stock-option distribution by approximately 10 per cent for thousands of employees, with the impact varying based on location and role.  

 

Meta's stock surges

 

Despite these cost-cutting efforts, Meta’s stock has surged by over 47 per cent in the past year, closing at $694.84 on Thursday. The rise reflects strong investor confidence in the company’s digital advertising revenue growth and its investments in artificial intelligence.  

 

In January, Meta reported fourth-quarter revenue of $48.39 billion, representing a 21 per cent increase compared to the previous year.