Meta increases executive bonuses to 200% — days after sacking 5% of workforce

Meta has approved a plan to increase executive bonuses just days after laying off five percent of its workforce.

In a corporate filing on Thursday, the company’s board of directors approved “an increase in the target bonus percentage” for its annual executive bonus plan approved by the compensation, nominating and governance committee (CNGC) of the Company’s Board of Directors

“As previously disclosed, Meta Platforms, Inc. (the “Company”) maintains a Bonus Plan (the “Bonus Plan”) that provides variable cash incentives, payable annually, which are designed to motivate its executive officers to focus on company priorities and to reward them for company results and achievements,” Meta said.

“Payouts under the Bonus Plan are calculated by multiplying (a) each executive officer’s base eligible earnings times his or her target bonus percentage and (b) the company performance percentage approved by the Compensation, Nominating & Governance Committee (the “CNGC”) of the Company’s Board of Directors for the relevant annual performance period.

“On February 13, 2025, the CNGC approved an increase in the target bonus percentage under the Bonus Plan for each of the Company’s named executive officers (other than its Chief Executive Officer (the “CEO”)) from 75% of each such named executive officer’s base salary to 200% of each named executive officer’s base salary, effective beginning with the 2025 annual performance period under the Bonus Plan.

“The CNGC analyzes market data for executive compensation at least annually, including based on input from its independent compensation consultant.

“In approving this increase, the CNGC considered that the target total cash compensation for the named executive officers (other than the CEO) was at or below the 15th percentile of the target total cash compensation of executives holding similar positions at the peer group of companies that the Company benchmarks against for executive compensation purposes (the “Peer Group Target Cash Compensation”).

“Following this increase, the target total cash compensation for the named executive officers (other than the CEO) falls at approximately the 50th percentile of the Peer Group Target Cash Compensation.”

The announcement comes shortly after Meta laid off five percent of its workforce due to low performance.

Meta also reportedly slashed its annual stock option distribution by about 10 percent for thousands of employees.

In January, Meta reported that its fourth-quarter revenue grew by 21 percent year-on-year, reaching $48.39 billion.