Meta has approved a significant increase in executive bonuses following recent layoffs affecting 5% of its workforce. A corporate filing on Thursday revealed that under the new bonus plan, Meta’s named executive officers can now receive up to 200% of their base salary, a sharp rise from the previous 75%. However, the updated plan does not apply to CEO Mark Zuckerberg.

The decision to revise the bonus structure was made by Meta’s board of directors on February 13. The company stated that the previous target cash compensation for its executives was at or below the 15th percentile compared to similar positions at peer companies. With this increase, executive compensation is now positioned around the 50th percentile within the industry.

This announcement comes a week after Meta began implementing layoffs affecting approximately 5% of its employees. The company had previously stated that the workforce reduction would target employees with lower performance ratings.

Additionally, Meta has reduced its annual distribution of stock options by about 10% for thousands of employees. According to a report by the Financial Times, the exact reduction may vary based on employees' roles and locations.

Despite these workforce adjustments, Meta's financial performance remains strong. The company's stock price has surged by more than 47% over the past year, closing at $694.84 on Thursday. Investor confidence has been driven by Meta’s growing digital advertising revenue and expectations that its artificial intelligence investments will yield substantial returns. In January, Meta reported a 21% year-over-year increase in fourth-quarter revenue, reaching $48.39 billion.

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This article was created with AI assistance.