Just days after cutting 5% of its workforce, Meta has approved a 200% increase in executive bonuses, raising eyebrows across the industry.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Meta’s Board of Directors approved the bonus hike under the company’s annual executive bonus plan, managed by the Compensation, Nominating, and Governance Committee (CNGC).
The filing, signed by Katherine R. Kelly, Meta’s Vice President and Corporate Secretary, stated that the bonus plan is designed to motivate executives and reward company performance through annual variable cash incentives.
Why the Bonus Hike?
On February 13, 2025, the CNGC approved raising the target bonus percentage for top executives (excluding CEO Mark Zuckerberg) from 75% to 200% of their base salaries.
The committee justified the decision by citing market comparisons, claiming that Meta’s executive pay was previously at or below the 15th percentile compared to similar roles at competing tech firms. The increase now aligns their compensation with the 50th percentile of Meta’s peer group.
Layoffs & Cost-Cutting Moves
Meta’s decision comes on the heels of recent layoffs, affecting thousands of employees, reportedly due to performance issues. The company has also cut annual stock option distributions by 10%, impacting a significant portion of its workforce.
Despite these cost-cutting measures, Meta remains financially strong, reporting a 21% year-on-year revenue increase in Q4 2024, reaching $48.39 billion.
What This Means
- Executives get a major pay boost while employees face layoffs and reduced stock benefits.
- Meta justifies the move by citing industry compensation benchmarks and executive retention strategies.
- With platforms like Facebook, Instagram, Threads, and WhatsApp, Meta remains a tech giant, but its compensation policies could spark further scrutiny.
The question remains: Is this a necessary step for Meta’s leadership retention or a tone-deaf move amid widespread job cuts?
