Meta Executives To Get Bonuses Of Up To 200%? Here's What We Know So Far
Meta has reportedly reduced the annual stock-option grants for thousands of employees by about 10 per cent.
Meta has approved a significant increase in executive bonuses, allowing its top officers to earn up to 200 per cent of their base salaries, a substantial jump from the previous 75 per cent, according to a corporate filing on Thursday, as reported by CNBC. However, this revised bonus structure does not apply to CEO Mark Zuckerberg.
The decision to enhance executive compensation comes just a week after Meta initiated layoffs affecting 5 per cent of its workforce. The company had previously indicated that these job cuts would primarily impact employees deemed lower performers.
The move was greenlit by a committee from Meta’s board of directors on February 13.
What Did Meta Find?
The committee’s assessment found that the total cash compensation for the company’s senior executives ranked at or below the 15th percentile compared to their counterparts at similar firms. With the adjustment, Meta stated in its filing that executive pay would now align more closely with the 50th percentile of the compensation offered by peer companies.
“Following this increase, the target total cash compensation for the named executive officers (other than the CEO) falls at approximately the 50th percentile of the Peer Group Target Cash Compensation,” the filing noted.
Annual Stock-Option Grant Reduced
In addition to the bonus revisions, Meta has reportedly reduced the annual stock-option grants for thousands of employees by about 10 per cent, according to a report from the Financial Times. The extent of this cut may vary based on employee location and job role.
The timing of these executive pay raises against the backdrop of layoffs and stock-option reductions may spark discussions on corporate priorities. However, investors have largely remained optimistic about Meta’s trajectory.
The company’s stock has surged over 47 per cent in the past year, closing at $694.84 on Thursday. Much of this growth is attributed to Meta’s expanding digital advertising revenues and its long-term investments in artificial intelligence, which analysts believe could yield significant financial gains.
Meta recently reported robust financial performance, with its fourth-quarter revenue climbing 21 per cent year-over-year to $48.39 billion, reinforcing its strong market position despite ongoing restructuring efforts.
Top Headlines
