Meta has announced a significant increase in annual bonuses for its top executives, excluding CEO Mark Zuckerberg, despite recent mass layoffs and reductions in stock options for remaining employees. The company’s Compensation, Nominating and Governance Committee approved a target bonus increase from 75 percent to 200 percent of base salary, effective for the 2025 performance period.
This adjustment raises the target total cash compensation for named executive officers to approximately the 50th percentile of their peer group, a notable increase from their previous standing at or below the 15th percentile.
For instance, Chief Technology Officer Andrew Bosworth’s base salary is $945,000. With the new bonus structure, his potential bonus could reach nearly $3 million, contingent on maintaining current salary levels and company performance metrics.
Recent layoffs at Meta, which affected about 3,700 employees or five percent of its workforce, were reportedly aimed at low performers. The company recorded a net income of $62.36 billion, marking a 59 percent increase year-over-year.
Additionally, Meta has reduced its annual stock option distribution by 10 percent for most staff members. Despite this, the company’s share price has recently climbed 10 percent over the past month and 46 percent over the past year.
As Meta prepares for an intense year ahead, it plans to invest heavily in artificial intelligence, with an estimated $60 billion earmarked for expanding its AI infrastructure in 2025. This follows a trend in Silicon Valley where executive compensation often rises in the wake of workforce reductions.
For more details, visit The Register.