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Meta executives eligible for 200% salary bonus under new pay structure

by February 21, 2025
by February 21, 2025

Meta executives are set to receive significantly larger bonuses this year, even as the company implements layoffs affecting 5% of its workforce.

According to a corporate filing on Thursday, Meta’s board approved an increase in the target bonus percentage for its executive compensation plan.

Under the new structure, top executives can earn up to 200% of their base salary in bonuses, a sharp rise from the previous 75%. However, the changes do not apply to CEO Mark Zuckerberg.

The decision, approved by Meta’s board compensation committee on February 13, was justified by the company’s assessment that its executive pay was lagging behind industry peers.

The filing stated that before the adjustment, Meta’s executive compensation was at or below the 15th percentile compared to similar roles at competing firms.

Following the increase, executive pay now aligns with the 50th percentile of peer companies.

The announcement comes just a week after Meta began cutting 5% of its workforce, a move the company had attributed to the performance of lower-ranked employees.

Additionally, thousands of Meta employees will see their stock option distributions shrink by about 10%, according to a report from the Financial Times.

The reduction in stock options will vary based on job roles and geographic location.

Despite the workforce reductions, Meta’s stock has surged over 47% in the past year, closing at $694.84 on Thursday.

The rise reflects strong investor confidence in the company’s growing dominance in digital advertising and its potential to capitalize on artificial intelligence investments.

Meta reported a 21% year-over-year increase in fourth-quarter revenue, reaching $48.39 billion.

The company’s continued financial strength has allowed it to adjust executive compensation to remain competitive, even as it trims employee stock rewards and reduces headcount.

The post Meta executives eligible for 200% salary bonus under new pay structure appeared first on Invezz

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