Meta Platforms Inc., the parent company of Facebook, has recently approved significant increases in executive bonuses. As reported in a Securities and Exchange Commission (SEC) filing dated February 13, the Compensation, Nominating and Governance Committee (CNGC) of Meta has sanctioned an increase in target bonus percentage for its named executives, excluding CEO Mark Zuckerberg. The adjustment elevates bonuses from 75% to 200% of the executives’ base salaries, a change that will be implemented starting in the company’s 2025 performance period.
In making this decision, the committee considered that the total cash compensation for these executives was at or below the 15th percentile when compared to peer companies. With the revised bonus structure, the non-CEO executives’ compensation will now align approximately with the 50th percentile of the target cash compensation at comparable firms.
This change follows Meta’s earlier announcement of workforce reductions as part of a strategy to enhance performance management. In January, Mark Zuckerberg communicated plans to reduce the workforce by 5% based on employee performance. He indicated an intention to implement more rigorous performance-based assessments throughout the year to identify and address underperformance promptly.
Additionally, Meta is targeting a 10% rate of “non-regrettable” attrition, which includes an anticipated 5% from 2024. Meanwhile, Meta’s share price has increased by approximately 14.8% since the beginning of the year. The company, which also owns Instagram, WhatsApp, and Oculus, plans to invest up to $65 billion in artificial intelligence (AI) initiatives. Zuckerberg mentioned that 2025 would be pivotal for AI development, with Meta AI projected to become a leading assistant serving over a billion users and Llama 4 expected to set new standards for AI models.