Meta has just increased bonuses of its major executives by nearly 200 percent amid layoffs. Meta said that the increase aims to bring executive compensation in line with other major technology firms. It’s worth pointing out that Meta announced an increase in executive bonuses soon after it laid off nearly 3,600 employees, which is around five percent of its total workforce. Furthermore, the company has also decided to reduce its annual distribution of stock options for thousands of its regular employees.
Meta executive bonuses have jumped to 200 percent this year from 75 percent earlier
Under the new plan, Meta executives will earn a yearly bonus of 200 percent of their base salary in 2025, which is a massive jump from 75 percent last year. A committee for Meta’s board of directors approved the change in bonuses on February 13th, on the grounds that the “target total cash compensation” for its executives “was at or below the 15th percentile of target total compensation of executives holding similar positions” at rival companies.
The social media giant has increased these bonuses while it is in the process of laying off five percent of its global workforce. This is despite the fact that Meta’s shares were nearly 50 percent higher over the past year, with a current stock price of nearly around $687 per share. Furthermore, the company recently announced that its fourth-quarter revenue increased 21 percent year-on-year to more than $48 billion. It’s worth mentioning that Meta has cut more than 20,000 jobs in the past few years.
Reduced stock options for thousands of regular employees
While Meta executives will enjoy their fat bonuses this year, the company’s regular employees will suffer. The company has slashed its annual distribution of stock options by roughly around 10 percent for its regular employees, reports The Financial Times. The exact reduction in the stock options could differ depending on where the employees are located and what their roles are in the organization.
That said, the new bonus and stock plans will take effect from the 2025 performance cycle. As per a filing, the new bonus plan doesn’t apply to CEO Mark Zuckerberg. However, he doesn’t have to worry about his bottom line as he’s worth nearly $250 billion.
