Meta approves plan for bigger executive bonuses following 5% layoffs

Executives at Meta stand to get bigger bonuses this year. 

The company said in a corporate filing Thursday that it had approved “an advance in the target bonus percentage” for its annual bonus plan for executives. Meta’s named executive officers could procure a bonus of 200% of their base salary under the new plan, up from the 75% they earned previously, according to the systematizing. 

The updated bonus plan doesn’t apply to Meta CEO Mark Zuckerberg, the filing noted.

A committee for Meta’s panel of directors approved the change on Feb.13 after determining that the “target total cash compensation” for its executives “was at or below the 15th percentile of the aim total cash compensation of executives holding similar positions” at peer companies. 

“Following this increase, the objective total cash compensation for the named executive officers (other than the CEO) falls at approximately the 50th percentile of the Peer Conglomeration Target Cash Compensation,” the filing said.

The disclosure of the new executive bonus plan comes a week after Meta launched laying off 5% of its overall workforce. The company had previously said this would impact its lowest performers.

Meta also slashed its annual sharing of stock options by about 10% for thousands of employees, according to a report published Thursday by the Financial Times. The communication noted that the stock-option reduction may differ based on where the workers live and their position at the company.

Meta shares are up past 47% over the past year and closed Thursday at $694.84, underscoring  investor enthusiasm over the social middle company’s growing sales in the digital advertising market and the potential for its AI investments to eventually generate big returns.

The company pronounced in January that its fourth-quarter revenue grew 21% year over year to $48.39 billion.

Meta did not response to a request for comment.

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