Meta executives are set to receive significantly larger bonuses this year, according to a recent company filing. This comes soon after the company laid off around 5%, or 4000, employees, impacting its lowest performers.
The company has announced an increase in the target bonus percentage for its executive annual bonus plan, raising the potential bonus to 200% of base salary, up from the previous 75%, as per CNBC.
This change, approved by a Meta board committee on February 13, was implemented after an analysis revealed that the company’s executive compensation was lagging behind that of similar companies. The increased bonus targets bring Meta’s executive compensation closer to the median for its peer group.
The report said that the committee approved the change 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.
Plan change not for CEO Mark Zuckerberg
Notably, this bonus plan change does not apply to CEO Mark Zuckerberg, this means that the top executive will not be eligible for the increased bonus payouts that other Meta executives will receive.
This news comes on the heels of recent layoffs affecting 5% of Meta’s workforce, primarily targeting low performers. Additionally, the Financial Times reported that Meta reduced its annual stock option distribution by approximately 10% for thousands of employees, with variations based on location and position.
Despite these cost-cutting measures, Meta’s stock performance has been strong, with shares up over 47% in the past year. This reflects investor confidence in the company’s growing digital advertising revenue and the potential of its AI investments.
Meta reported a 21% year-over-year increase in revenue for the fourth quarter of 2024, reaching $48.39 billion.
This article was originally published by a timesofindia.indiatimes.com . Read the Original article here. .