Meta Boosts Executive Bonuses Amid Workforce Cuts

Saturday, February 22, 2025

Meta’s decision to significantly increase executive bonuses shortly after laying off thousands of employees raises questions about the company’s compensation priorities and internal morale.

Key Points

• Increased Bonuses: Meta approved a plan allowing executives to earn annual bonuses up to 200% of their base salary, a substantial rise from the previous 75%. CEO Mark Zuckerberg is excluded from this change. Investopedia
• Recent Layoffs: This approval follows the company’s decision to lay off approximately 5% of its workforce, equating to around 4,000 employees, targeting what were termed “low performers.” NY Post
• Employee Compensation Adjustments: Concurrently, Meta has reduced annual stock awards for employees by about 10%, affecting the overall compensation for its staff. Business Insider

What’s Next

As Meta continues to invest heavily in artificial intelligence and other strategic areas, the company may face increased scrutiny over its compensation practices and their impact on employee morale and public perception.