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2mo ago

Meta Boosts Executive Bonuses to 200% After Workforce Cuts

The decision follows layoffs affecting 5% of Meta’s workforce, with executives now receiving significantly higher cash compensation to align with industry peers.

A sign with Meta’s logo sits in front of the tech giant’s headquarters at 1 Hacker Way in Menlo Park, Calif., on July 11, 2024. 
People walk behind a logo of Meta Platforms company, during a conference in Mumbai, India, September 20, 2023. REUTERS/Francis Mascarenhas/File Photo
Andrew Bosworth, the chief technology officer of Meta, speaks during an event at the company’s headquarters in Menlo Park, Calif., on Sept. 27, 2023.

Overview

  • Meta's board approved raising executive bonuses from 75% to 200% of base salaries, effective for the 2025 performance period.
  • The decision was made after determining that Meta's executive compensation was below the 15th percentile compared to peer companies, aiming to bring it to the 50th percentile.
  • CEO Mark Zuckerberg is excluded from the new bonus plan, as his compensation is tied to Meta stock holdings rather than salary or bonuses.
  • The bonus increase coincides with layoffs affecting approximately 4,000 employees, justified by the company as targeting low performers to streamline operations.
  • Meta has also cut annual stock awards for many employees by about 10%, while continuing to invest heavily in artificial intelligence initiatives, with up to $65 billion allocated for 2025.