Introduction to Meta’s New Executive Bonus Plan

Meta has introduced a new executive bonus plan, , which offers lucrative bonuses to executives. Under this plan, executives can earn a yearly bonus of up to 200 percent of their base salary, a significant increase from the previous 75 percent. This announcement comes on the heels of Meta’s decision to implement sweeping layoffs, , affecting five percent of its workforce.

Rationale Behind the New Bonus Plan

A committee of Meta’s board of directors approved the change on February 13, citing that the target total cash compensation for its executives was at or below the 15th percentile compared to similar positions in rival companies. Notably, this new bonus plan does not apply to CEO Mark Zuckerberg, whose worth is nearly $250 billion. Therefore, his compensation is not a concern.

Impact on Regular Employees

In contrast to the increased bonuses for executives, Meta has decided to reduce its annual distribution of stock options by about ten percent for thousands of its regular employees, . The exact reduction may vary based on the employees’ location and role, but Meta has not provided further details on this decision.

Current State of Meta

Despite the company’s shares being up nearly 50 percent over the past year, with a current stock price of around $687 per share, and its fourth-quarter revenue growing 21 percent year-over-year to over $48 billion, Meta is proceeding with laying off five percent of its global workforce. This move is part of a larger trend, as the company has in the past couple of years.

CEO’s Perspective

CEO Mark Zuckerberg expressed his views on the restructuring, stating, "A leaner org will execute its highest priorities faster. People will be more productive, and their work will be more fun and fulfilling." However, the juxtaposition of significant layoffs with substantial executive bonuses may not align with the notion of "fun and fulfilling" work environments.

Call for Insights

If you are a current or former Meta employee with thoughts on this new executive bonus structure, you can share your insights anonymously via Signal at LawrenceBonk.96. Your feedback is valued and will be kept confidential.