New Delhi: Amid ongoing layoffs at Facebook, WhatsApp and Instagram executives at Meta are set to receive significant bonuses this year. Meta has announced an increase in the bonus potential for its top executives, according to a recent CNBC report.
The company’s corporate filing reveals that executive officers can now earn up to 200 per cent of their base salary in bonuses, a notable jump from the previous 75 per cent. This change comes as the company navigates challenging times, including restructuring and workforce reductions.
CEO Excluded
It’s important to note that this bonus plan does not apply to Meta’s CEO, Mark Zuckerberg. The change which was approved by a committee led by the board of directors on February 13, was made after the company realized that its target total cash compensation for executives was at or below the 15th percentile compared to similar positions at competitor companies.
The filing stated, “After this increase in bonuses, the target total cash consideration for named executive officers (other than the CEO) comes to approximately one-fifth percentile of the target total cash consideration of competitors.”
Meta to Implement Job Cuts Globally
Meta is carrying out job cuts, which it is calling “performance terminations,” targeting the lowest-performing 5 per cent of its workforce. Unlike previous layoffs, the company will keep its offices open on the day of the cuts and won’t make a company-wide announcement.
These layoffs will take place globally, though employees in Germany, France, Italy, and the Netherlands will be exempt due to local laws. Notifications will be sent to staff across more than a dozen countries in Europe, Asia, and Africa between February 11 and February 18.
Focus on Recruiting
Despite these job cuts, Meta is still prioritizing the recruitment of machine learning engineers and other key roles. According to a memo from Peng Fan, VP of Engineering for Monetization, the hiring process will be fast-tracked from February 11 to March 13, highlighting the company’s strong focus on AI development for 2025.