Meta increases executive bonuses to 200% while laying off 3,600 employees

Meta executives are set to receive a significant increase in their bonuses after the company approved a plan to raise their target bonus percentage from 75 per cent to 200 per cent of their base salary.

According to media reports, this change was outlined in a recent SEC filing and comes amid ongoing layoffs and restructuring efforts.

The amendment will take effect from the 2025 performance cycle and will not impact CEO Mark Zuckerberg. Meta stated that the increase aims to bring executive compensation in line with other major tech firms, according to CNBC.


A committee of Meta’s board of directors approved the change on February 13, 2025, noting that the company’s previous cash-based executive compensation was below the 15th percentile compared to similar positions in peer organisations.

With the adjustment, Meta now places its executive pay at the 50th percentile of the industry, according to the CNBC report.

Bonuses amid layoffs

According to a Fortune report, the increase in executive bonuses was announced shortly after Meta laid off nearly 3,600 employees — around 5 per cent of its workforce.

The company reportedly justified the layoffs as part of an effort to remove low performers, though many former employees disagreed.

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One ex-content manager, Kaila Curry, posted on social media that she had never been placed on a performance improvement plan, nor had she received corrective feedback or proper mentoring.

Strong financial performance despite job cuts

Despite workforce reductions, Meta remains in a strong financial position. The company recorded a 21 per cent revenue increase between Q4 2023 and Q4 2024, exceeding last year’s total revenue of $48.4 billion, which was well above analysts’ expectations, the Fortune report stated.

Meta attributed its growth to increased advertising revenue and advancements in artificial intelligence.

Zuckerberg described 2025 as a big year for AI, stating that Meta was on track to deliver what could become the most widely used virtual assistant in the industry.

Over the past year, Meta’s stock has risen by 47 per cent, closing at $694.84 on Thursday, reflecting strong investor confidence.

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FAQs

1. Why has Meta increased executive bonuses?
Meta claims that the increase ensures executive compensation is in line with industry standards. Previously, executive pay was below the 15th percentile compared to peer companies.


2. How will this affect employee bonuses?
The increase has sparked criticism, as it coincides with Meta laying off approximately 3,600 employees, many of whom contest being labelled as “low performers.” However, Meta maintains that these adjustments are part of a long-term strategy.