Meta has approved a plan to significantly increase executive bonuses just days after cutting five percent of its workforce, according to a filing with the United States Securities and Exchange Commission.
The company’s board of directors approved the move, which raises the target bonus percentage for Meta’s annual executive bonus plan to 200%, up from 75%. The decision was made by the Compensation, Nominating, and Governance Committee and was disclosed in a report signed by Katherine R. Kelly, Vice President and Corporate Secretary at Meta.
The report stated that the Bonus Plan is designed to incentivize executive officers by tying their cash compensation to company performance. Under the plan, payouts are determined by multiplying an executive’s base salary by the newly approved bonus percentage and the company’s performance metrics.
The filing noted that on February 13, 2025, the CNGC approved the increase, effective beginning with the 2025 annual performance period. The committee justified the decision by pointing out that Meta’s executive compensation was previously at or below the 15th percentile compared to similar roles in peer companies. With the increase, the target total cash compensation now aligns with the 50th percentile of industry standards.
The announcement comes amid Meta’s recent workforce reduction, in which five percent of employees were laid off due to underperformance concerns. Additionally, the company has reportedly reduced its annual stock option distributions by around 10% for thousands of employees.
Despite these cost-cutting measures, Meta reported a strong financial performance in its latest earnings release, with fourth-quarter revenue growing 21% year-over-year to $48.39 billion.
Meta, formerly known as Facebook, owns and operates major social media platforms, including Facebook, Instagram, Threads, and WhatsApp. The company’s decision to boost executive compensation while cutting jobs has sparked criticism over its corporate priorities and treatment of employees.
