Meta Platforms, Inc. has approved a significant increase in annual bonuses for its executive officers, raising the target percentage from 75% to 200% of their base salaries. This adjustment, effective for the 2025 performance period, excludes CEO Mark Zuckerberg and aligns Meta’s executive compensation with the median of its peer companies. The decision follows a review that found Meta’s executive cash compensation was previously at or below the 15th percentile compared to similar roles in other firms.
This move comes amid broader cost-cutting measures, including layoffs affecting approximately 4,000 employees, or 5% of Meta’s workforce. These layoffs are reportedly targeting lower-performing employees as part of efforts to streamline operations and focus on AI investments. Additionally, Meta has reduced annual stock option allocations for many employees by about 10%, with variations depending on location and role.
The changes occur as Meta experiences strong financial performance, including a 21% year-over-year revenue growth in Q4 2024 and a 50% increase in its stock price over the past year. These results reflect investor confidence in Meta’s digital advertising and AI initiatives. However, the timing of increased executive bonuses alongside workforce reductions and reduced employee stock benefits has drawn attention.