Meta has approved a major increase in executive bonuses, with CEO Mark Zuckerberg excluded from the plan. The company will now award bonuses of up to 200% of executives’ salaries, effective from the 2025 annual performance period.
The move comes after a review of other tech companies in the sector found that Meta’s total cash compensation for executives was below average. The increase aims to motivate executives to focus on company priorities and reward them for achievements.
The change follows recent job cuts, with around 3,600 employees laid off as part of a restructuring effort aimed at strengthening operations after CEO Zuckerberg announced plans to heavily invest in AI efforts. Some affected workers have disputed the “low performance” label used by Meta, claiming they received positive reviews but were terminated without explanation.
The shift marks a tone change from mass layoffs in recent years, which have largely been attributed to cost-cutting measures. Meta has promised to replace some of the laid-off workers and has reported strong Q4 earnings, with revenue increasing 21% year-over-year to $48.4 billion. The company credits its advertising business and AI-driven product improvements for the growth.
Source: https://fortune.com/2025/02/21/meta-approves-bonuses-200-company-executives-salaries-laying-off-3600