Jamie Spencer
Executives at Meta are set to receive bigger bonuses this year after the company approved an increase in the target bonus percentage for its annual executive bonus plan. According to a corporate filing on Thursday, Meta’s named executive officers can now earn bonuses of up to 200% of their base salary, up from the previous 75%.
Details of the Updated Bonus Plan
The new bonus structure does not apply to Meta CEO Mark Zuckerberg, as noted in the filing. Meta’s board of directors’ compensation committee approved the change on February 13 after determining that the company’s target total cash compensation for executives was “at or below the 15th percentile” compared to 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 stated.
Context of Layoffs and Stock Option Reductions
The announcement of the executive bonus increase comes just a week after Meta laid off 5% of its workforce, impacting its lowest-performing employees. Additionally, Meta reduced its annual distribution of stock options by about 10% for thousands of workers, according to the Financial Times. The reduction varies based on employees’ location and position within the company.
Investor Sentiment and Financial Performance
Despite the layoffs and changes in employee compensation, Meta’s stock has surged more than 47% over the past year, closing at $694.84 on Thursday. Investors remain optimistic about Meta’s growing sales in the digital advertising market and the potential returns from its artificial intelligence investments.
In January, Meta reported a 21% year-over-year increase in fourth-quarter revenue, reaching $48.39 billion, reflecting strong performance in its core business areas.
