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Meta Increases Executive Bonuses Amid Workforce Layoffs
Meta Platforms has announced significant changes to its executive compensation structure, potentially increasing bonuses for its executives at a time when the company is also streamlining its workforce.
In a recent corporate filing, Meta declared that it has approved a “target bonus percentage” increase for its annual bonus plan. Under the revised structure, named executive officers could now earn bonuses up to 200% of their base salary, a substantial rise from the previous cap of 75%.
However, it’s noteworthy that the enhanced bonus plan does not extend to CEO Mark Zuckerberg, as specified in the filing.
This adjustment followed a decision by a committee of Meta’s board of directors on February 13, which concluded that the overall cash compensation for executives was positioned at or below the 15th percentile compared to similar roles in rival companies. Following the adjustments, the targeted total cash compensation for these executives (excluding the CEO) is expected to align more closely with the 50th percentile within their peer group.
The announcement regarding the bonus restructuring comes shortly after Meta initiated layoffs affecting approximately 5% of its total workforce. The company indicated that these layoffs would primarily impact its lower-performing employees.
In addition, a report by the Financial Times revealed that Meta has reduced its annual distribution of stock options for numerous employees by around 10%. The specifics of this reduction may vary depending on employees’ locations and their roles within the organization.
Despite these operational changes, Meta’s stock performance has been notably robust, with shares gaining over 47% over the past year to close at $694.84 on Thursday. This surge reflects investor optimism fueled by the company’s rising revenues from digital advertising and the anticipated long-term benefits of investments in artificial intelligence.
In its fourth-quarter earnings report released in January, Meta highlighted a remarkable 21% year-over-year growth in revenue, reaching $48.39 billion.
Meta has not provided additional comments regarding these developments.
Watch: What’s driving Meta’s stock run
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