Meta has significantly increased the target bonus percentage for its top executives to 200% of their base salaries following the recent layoff of 5% of its workforce.
Meta’s latest filing with the Securities and Exchange Commission (SEC) reveals a major adjustment in the bonus structure for its executive officers. This year, bonuses can reach up to 200% of the executives’ base salaries, a substantial rise from the previous cap of 75% set for 2023 and 2024. This change incentivises and recognises the executives’ contributions towards the company’s strategic goals and overall success.
The revised bonus structure will benefit several key members of Meta’s leadership, including Chief Financial Officer Susan Li, Chief Product Officer Christopher K. Cox, Chief Operating Officer Javier Olivan, and Chief Technology Officer Andrew Bosworth. These executives received around $1 million in bonuses in 2023, per an earlier SEC filing.
This increase aligns Meta’s compensation packages more closely with those of its main competitors, such as Amazon, Microsoft, and Apple. According to the SEC filing, Meta’s previous bonus payouts were positioned “at or below the 15th percentile” among similar roles across peer companies. With the new adjustments, Meta aims to position its bonuses around the “50th percentile,” ensuring competitive compensation practices.
The announcement comes shortly after Meta implemented significant workforce reductions, laying off 3,600 employees as part of a broader initiative to streamline operations and focus on “low performers.” The company communicated these layoffs through email and has indicated plans to ramp up hiring in key areas such as machine learning.
Meat CEO Compensation Structure
Despite these changes, CEO Mark Zuckerberg remains outside the bonus structure. With a nominal base salary of $1, Zuckerberg received $24.4 million in “other compensation” in 2023, primarily related to security measures and private aircraft usage.
Read: Meta Employee Laid Off After Returning From Maternity Leave Sparks Controversy
In addition to increasing executive bonuses, Meta has reduced its annual distribution of stock options by 10% for its employees, further refining its approach to compensation amid ongoing organizational changes.
