Meta Approves Executive Bonus Plan Up to 200% of Base Salary

Meta recently approved a plan that could potentially grant company executives a bonus of up to 200% of their base salary, as disclosed in an SEC filing on Thursday. The bonus plan aims to offer "variable cash incentives" to motivate executive officers to prioritize company goals and reward them for successful outcomes and accomplishments.

Increased Bonus Package

According to the filing, the bonus plan would raise the bonus package from 75% to 200% of the executives' base pay, indicating a significant increase in potential bonus earnings for company leadership.

Exclusion of Meta CEO

It's worth noting that the bonus boost does not extend to Meta CEO Mark Zuckerberg. This exclusion aligns with common practices in executive compensation, where chief executives often have compensation structures that focus more on stock options rather than cash incentives.

Response and Layoffs

A Meta spokesperson refrained from immediate comments following the filing. The approval of the bonus plan coincides with another round of layoffs at Meta, with a target of reducing 5% of the workforce, translating to nearly 4,000 employees losing their jobs.

Rationale Behind Layoffs

Zuckerberg explained that the layoffs aimed to address "low-performers" as the company seeks to streamline its operations amidst what he described as "an intense year." Additionally, Meta plans to make substantial investments in artificial intelligence technologies.

Employee Reactions

However, some of the employees who were laid off expressed surprise at the decision. Despite receiving "At or Above Expectations" ratings in Meta's midyear reviews in 2024, they found themselves included in the layoffs. One impacted worker shared their shock, mentioning a solid performance history with no recent performance issues.

A Meta spokesperson emphasized that past performance does not guarantee ongoing success, stating that employees at Meta are consistently held to high-performance standards based on set goals and expectations.

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By: lloydlee@insider.com (Lloyd Lee)
Title: Meta Approves Executive Bonus Plan Up to 200% of Base Salary
Sourced From: www.businessinsider.com/meta-approves-bonuses-executives-amid-layoffs-2025-2
Published Date: Fri, 21 Feb 2025 01:57:17 +0000