By Nokia621 - Own work, CC BY-SA 4.0,
Meta executives are poised to receive increased bonuses this year, following a corporate filing on Thursday that outlined modifications to the company’s executive bonus plan. The updated framework allows Meta’s named executive officers to qualify for bonuses equivalent to 200 percent of their base salary, a significant increase from the prior 75 percent, as reported by The Financial Express.
Notably, these changes do not extend to CEO Mark Zuckerberg, as indicated in the filing. The adjustment was sanctioned by a committee of Meta’s board of directors on February 13, after assessing that executive compensation was “at or below the 15th percentile” in comparison to similar roles at rival companies. With the new structure, the total target cash compensation for the company’s leading executives—excluding Zuckerberg—has been aligned with the 50th percentile of its industry counterparts.
This announcement follows closely on the heels of Meta’s decision to lay off 5 percent of its workforce, a strategy the company has justified as a means to address underperformance among employees. Furthermore, a report from the Financial Times published on Thursday indicated that Meta has decreased its annual stock-option allocation by roughly 10 percent for thousands of its employees, with the effects differing according to location and job role.
Meta’s stock has experienced a significant increase, rising over 47 percent in the past year and closing at $694.84 on Thursday. This growth is indicative of robust investor confidence in the company’s expansion of digital advertising revenue and its strategic investments in artificial intelligence.
In January, Meta disclosed that its fourth-quarter revenue reached $48.39 billion, marking a 21 percent increase from the previous year.
