Meta has significantly increased executive bonuses, raising them from 75% to 200% of base salary, according to a corporate filing on February 20.
The decision, approved on February 13 by a committee of Meta’s board of directors, was made after determining that executive pay at the company was below the industry median. The revised bonus plan does not apply to Meta CEO Mark Zuckerberg, CNBC reports.
The company stated that prior to this revision, its named executive officers had compensation levels “at or below the 15th percentile” compared to peers. Following the hike, executive cash compensation now aligns with the 50th percentile of similar roles at competitor firms, according to the filing.
The announcement comes amid Meta’s recent layoffs, which are expected to affect 5% of its workforce. The company had previously indicated that the cuts would primarily target low-performing employees.
Additionally, the Financial Times reports that Meta has reduced annual stock option distributions by around 10% for thousands of employees, with variations based on location and position.
Despite internal cost-cutting, Meta’s stock has surged over the past year, climbing more than 47% to close at $694.84 on Thursday, February 20. The social media giant continues to see growth in its advertising revenue and anticipates long-term gains from its artificial intelligence (AI) investments. In January, Meta reported a 21% year-on-year rise in fourth-quarter revenue, reaching $48.39 billion.
Meta, allegedly, did not respond to a request for comment.
