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Meta approves plan for bigger executive bonuses following 5% layoffs

by February 22, 2025
written by February 22, 2025

Executives at Meta stand to get bigger bonuses this year. 

The company said in a corporate filing Thursday that it had approved “an increase in the target bonus percentage” for its annual bonus plan for executives. Meta’s named executive officers could earn a bonus of 200% of their base salary under the new plan, up from the 75% they earned previously, according to the filing. 

The updated bonus plan doesn’t apply to Meta CEO Mark Zuckerberg, the filing noted.

A committee for Meta’s board of directors approved the change on Feb.13 after determining that the “target total cash compensation” for its executives “was at or below the 15th percentile of the target total cash compensation of executives holding similar positions” at peer companies. 

“Following this increase, the target total cash compensation for the named executive officers (other than the CEO) falls at approximately the 50th percentile of the Peer Group Target Cash Compensation,” the filing said.

The disclosure of the new executive bonus plan comes a week after Meta began laying off 5% of its overall workforce. The company had previously said this would impact its lowest performers.

Meta also slashed its annual distribution of stock options by about 10% for thousands of employees, according to a report published Thursday by the Financial Times. The report noted that the stock option reduction may differ based on where the workers live and their position at the company.

Meta shares are up more than 47% over the past year and closed Thursday at $694.84, underscoring investor enthusiasm over the social media company’s growing sales in the digital advertising market and the potential for its artificial intelligence investments to eventually generate big returns.

The company said in January that its fourth-quarter revenue grew 21% year over year to $48.39 billion.

Meta did not reply to a request for comment.

This post appeared first on NBC NEWS
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