Meta, the parent company of Facebook and Instagram, has approved a substantial increase in executive bonuses amid recent layoffs affecting thousands of employees.
According to a recent SEC filing, Meta's executive officers will be eligible for bonuses up to 200% of their base salaries starting in 2025, up from the previous 75% target. The company states this adjustment aims to bring executive compensation more in line with peer companies in the tech sector.
The timing of this announcement has raised eyebrows, coming just one week after Meta laid off approximately 3,600 employees - roughly 5% of its workforce. While the company labeled these cuts as targeting "low performers," several terminated employees have publicly disputed this characterization, noting they had received positive performance reviews.
The enhanced bonus structure will apply to key executives including Chief Financial Officer Susan Li, Chief Product Officer Christopher Cox, Chief Operating Officer Javier Olivan, and Chief Technology Officer Andrew Bosworth. CEO Mark Zuckerberg, who maintains a symbolic $1 annual salary, is not included in this bonus plan.
Meta defended the bonus increase, noting that their executive compensation had previously fallen at or below the 15th percentile compared to similar positions at peer companies. The new structure aims to position Meta's executive pay at the 50th percentile of their peer group.
The contrast between expanding executive compensation and workforce reduction comes as Meta reports strong financial performance, with Q4 2024 revenue increasing 21% year-over-year to $48.4 billion. The company has indicated plans to replace the laid-off workers while increasing investment in artificial intelligence initiatives.