Meta doubles executives' bonuses to 200% of salary after recent layoffs

Meta’s bonus boost for top execs comes a week after company laid off 3,600 workers or 5% of its workforce.

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Meta has announced that it will more than double the target bonus percentage for its top executives to 200% of their base salaries, a move that comes just a week after the company laid off 5% of its workforce.

In a filing with the Securities and Exchange Commission (SEC) on Thursday, Meta stated that it had approved an increase in the bonus targets for its executive officers.

The new bonus structure will see executives receive up to 200% of their base salaries, a significant increase from the previous target of 75% in 2023 and 2024.

The company explained that this change in the bonus structure aims to "motivate" and "reward" its executives for their contributions to the company’s priorities and achievements.

Meta’s Chief Financial Officer Susan Li, Chief Product Officer Christopher K. Cox, Chief Operating Officer Javier Olivan, and Chief Technology Officer Andrew Bosworth will all benefit from this increase in their bonuses.

Each of these executives earned around $1 million in bonuses in 2023, according to an April 2024 SEC filing.

The bonus boost comes as Meta seeks to stay competitive with other major tech companies like Amazon, Microsoft, and Apple.

According to the SEC filing, the company found that its 2024 bonus payouts were "at or below the 15th percentile" of those paid to executives in similar roles at its peer companies.

After the increase, Meta’s bonuses will be in line with the "50th percentile," providing a more balanced approach compared to its competitors.

This announcement of higher bonuses arrives on the heels of a major restructuring effort at Meta.

Last week, the company laid off 3,600 employees, or 5% of its 72,000-person workforce, citing the need to focus on "low performers."

The layoffs were implemented via email, and Meta is now looking to increase hiring for machine-learning engineers.

Despite the bonus increase, Meta’s CEO, Mark Zuckerberg, does not participate in the bonus structure. Zuckerberg, who earns a base salary of $1, received $24.4 million in "other compensation" in 2023, primarily for security and the personal use of private aircraft.

Alongside the bonus increases, Meta has also decided to cut its annual distribution of stock options by 10% for its employees, further adjusting its compensation structure.