Just a week after slashing its workforce by roughly 5%, or 3,600 employees, Meta has greenlit a compensation plan that could see its top executives pocketing bonuses of up to 200% of their base salaries.
The move, disclosed in an SEC filing, has ignited a firestorm of criticism, raising questions about priorities and fairness at the tech giant.
The company’s filing stated that it was increasing its “target bonus percentage” for named executive officers from 75% to 200% of their base salary, effective for the 2025 annual performance period.
CEO Mark Zuckerberg is excluded from this particular plan.
Meta justified the “variable cash incentives” as a way to “motivate its executive officers to focus on company priorities and to reward them for company results and achievements.”
According to Meta’s board of directors, the decision to increase bonuses stemmed from a review of compensation practices within the tech sector.
The board found that the company’s total cash compensation for executives “was at or below the 15th percentile of the target total cash compensation of executives holding similar positions” at peer companies.
The bonus increase is intended to bring Meta’s executive compensation to the “50th percentile of the peer group target cash compensation,” the filing stated.
The percentage increase was approved by the committee for Meta’s board of directors on February 13, 2025.
‘Low performance’ under scrutiny: Meta’s layoffs spark backlash
The timing of the bonus increase has amplified concerns over Meta’s recent layoffs.
The company attributed the job cuts to a need to streamline operations after Zuckerberg declared 2025 “an intense year” and announced aggressive investments in AI.
Meta informed the affected workers that their employment was being terminated due to “low performance.”
However, numerous former employees have taken to LinkedIn and other online platforms to dispute this assessment, claiming they consistently received positive performance reviews.
Kaila Curry, an ex-content manager at Meta, voiced her frustration in a LinkedIn post:
I frequently asked for feedback and was always told I was doing a good job. I was never placed on a PIP [performance improvement plan], never given corrective feedback, and never properly mentored or provided clear expectations. I simply put in the work… I am not a low performer.
Meta’s approach mirrors a trend among Big Tech companies like Microsoft, which has also signaled plans to target underperforming employees in upcoming rounds of layoffs.
This shift represents a notable departure from earlier mass tech layoffs, which were primarily attributed to cost-cutting measures.
Meta has even stated intentions to replace some of the laid-off workers.
According to a Fortune report, several workplace experts said that “low performance” label attached to the laid-off workers is often subjective and potentially unfair, regardless of intent.
Strong earnings, murky morale? Meta navigates a tricky landscape
Despite the recent layoffs and the ensuing controversy, Meta reported strong financial results for Q4 2024.
Revenue surged by 21% year-over-year to $48.4 billion, exceeding Wall Street expectations.
The company attributed this growth to its advertising business and AI-driven product improvements.
Zuckerberg has hailed 2025 as a “really big year,” anticipating that Meta’s AI assistant will become the most widely used in the industry.
As Meta pushes forward with its AI ambitions and rewards its top executives, the company faces the challenge of balancing innovation and profitability with employee morale and public perception.
The tension between these competing priorities is likely to remain a central theme as Meta navigates the year ahead.
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