Meta Hikes Executive Bonuses To 200% Of Salaries, Excluding CEO

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(RTTNews) - Meta Platforms, Inc. announced the approval of a hefty increase in bonuses of its select executive officers under the new executive bonus plan, excluding Chief Executive Officer Mark Zuckerberg.

The news comes close on the heels of the tech major's recent announcement of significant growth in its fourth-quarter results and positive outlook, as well as the layoff of 5% of its overall workforce.

In a filing with the U.S. Securities And Exchange Commission, the parent of Facebook and Instagram said its Compensation, Nominating & Governance Committee or CNGC on February 13 approved an increase in the target bonus percentage for each of the company's named executive officers to 200% of their base salary from the 75% they earned previously.

The change will be effective beginning with the 2025 annual performance period under the Bonus Plan that provides variable cash incentives, payable annually.

According to the firm, the bonus plan, analyzing the market data for executive compensation at least annually, is designed to motivate its executive officers to focus on company priorities and to reward them for company results and achievements.

Commenting about the bonus hike, the CNGC said it considered that the target total cash compensation for the named executive officers, other than the CEO, was at or below the 15th percentile of the target total cash compensation of executives holding similar positions at the peer group of companies.

Following this increase, the target total cash compensation for the named executive officers falls at around the 50th percentile of the Peer Group Target Cash Compensation.

In its latest fourth quarter, Meta's earnings increased from the same period last year to $20.838 billion or $8.02 per share, and adjusted earnings also beat the Street estimates, with 20.6 percent rise in revenues to $48.385 billion.

While announcing the results in late January, the company had also issued positive outlook, expecting first-quarter revenue in the range of $39.5 billion-$41.8 billion, an 8% to 5% year-over-year growth on a reported basis, or 11-18% growth on a constant currency basis. The company also expects the investments being made in its core business this year to present an opportunity to continue delivering strong revenue growth throughout 2025.

Zuckerberg, Meta founder and CEO, then had noted that the company continues to make good progress on AI, glasses, and the future of social media.

Despite the significant performance, the company reportedly began laying off 5% of its overall workforce recently, which could impact its lowest performers.

Meanwhile, Financial Times reported that Meta slashed its annual distribution of stock options by about 10% for thousands of employees. The stock-option reduction reportedly may differ based on where the workers live and their position at the company.