Meta has approved a plan to increase executive bonuses to 200% just days after laying off five percent of its workforce.
In a report filed with the United States Securities and Exchange Commission, the company’s board of directors approved an increase in the target bonus percentage for its annual executive bonus plan, which was approved by the Compensation, Nominating, and Governance Committee (CNGC) of the Board of Directors.
The report, signed by Katherine R. Kelly, Vice President and Corporate Secretary at Meta, disclosed that Meta Platforms, Inc. (the “Company”) maintains a 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.
“Payouts under the Bonus Plan are calculated by multiplying each executive officer’s base eligible earnings times his or her target bonus percentage and the company performance percentage approved by the CNGC for the relevant annual performance period,” the report said.
Market data analysis
The report indicated that 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 the CEO) from 75% to 200% of each named executive officer’s base salary, effective beginning with the 2025 annual performance period under the Bonus Plan.
It noted that the CNGC analyzes market data for executive compensation at least annually, 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.
“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 report explained.
What you should know
- This announcement comes shortly after Meta laid off five per cent of its workforce due to low performance.
- Additionally, Meta reportedly reduced its annual stock option distribution by about 10 per cent for thousands of employees.
- In January, Meta reported that its fourth-quarter revenue grew by 21 per cent year-on-year, reaching $48.39 billion.
Meta, formerly named Facebook, is the owner and operator of Facebook, Instagram, Threads, and WhatsApp.
