Introduction to Meta’s New Executive Bonus Plan

Meta has recently introduced a new executive bonus plan, as disclosed in a company filing released on Thursday. This plan allows executives to earn a yearly bonus of up to 200 percent of their base salary, which represents a significant increase from the previous 75 percent.

Details of the New Bonus Plan

The change was approved by a committee of Meta’s board of directors on February 13, based on the grounds that the total cash compensation for its executives was below the 15th percentile of that of executives holding similar positions at rival companies. However, it is worth noting that this new bonus plan does not apply to CEO Mark Zuckerberg, whose net worth is nearly $250 billion.

Impact on Regular Employees

In contrast to the increased bonuses for executives, Meta has decided to reduce its annual distribution of stock options by around ten percent for thousands of its regular employees, according to a report by The Financial Times. The exact reduction may vary depending on the employees’ location and role, but Meta has not provided further comment on this decision.

Meta’s Current Financial Situation

Despite the company’s decision to lay off five percent of its global workforce, Meta’s shares have increased by nearly 50 percent over the past year, with a current stock price of around $687 per share. Additionally, the company’s fourth-quarter revenue grew 21 percent year-over-year to more than $48 billion. This is not the first time Meta has laid off employees, as the company has cut more than 20,000 jobs in the past couple of years.

Reaction to the New Bonus Plan

In a statement made at the end of last year, Zuckerberg said, "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 introduction of this new bonus plan, combined with the layoffs, may not align with this vision of a more enjoyable work environment.

Invitation for Feedback

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