Executive Bonuses Increase After Layoffs

[paserbyp]

Meta may have recently slashed up to 5% of its workforce, but that hasn’t stopped the company from introducing a lucrative new executive bonus scheme.

According to a recent SEC filing, executive officers at Meta can now get up to 200% of their base salary in the form of an annual performance-based payout, up from 75%. Meta says the move is based on its analysis of executive compensation at comparable companies, as well as input from its “independent compensation consultant.” (More details: https://www.sec.gov/ix?doc=/Archives/edgar/data/1326801/000132680125000021/meta-20250213.htm).

The filing says the “variable cash incentives” are meant to “motivate its executive officers to focus on company priorities” and “reward them for company results and achievements.” The decision to boost executive compensation won't impact CEO Mark Zuckerberg’s personal pay packet, according to the filing.

Meta started laying off US-based employees earlier this month, with their severance packages including 16 weeks of pay plus an extra two weeks for each year of service. Zuckerberg claimed in an internal memo leaked to Bloomberg that the cuts, impacting as many as 3,600 people, were meant to eliminate those who were not "meeting expectations over the course of a year."

The CEO added that 2025 is set to be an "intense year," pointing to the company's work in AI and smart glasses, saying he wants to "make sure we have the best people on our teams.”

Layoffs are just one of the issues impacting rank-and-file Meta employees. Meta also recently opted to reduce its annual distribution of stock options by about 10% for most of its staff, reducing the total compensation for tens of thousands of employees.

The news of larger executive payouts comes as Meta is recording some of its highest-ever profits. The company reported a net income of $62 billion in its 2024 financial year, a 59% year-over-year increase, while revenues were also up 22%.

Meta announced in January it plans to invest as much as $65 billion on AI infrastructure in 2025, including making numerous new hires in artificial intelligence roles and building a 1-gigawatt data center that "would cover a significant part of Manhattan."