Meta cuts jobs and stock incentives, yet increases executive bonuses
Meta has unveiled a new executive bonus plan that significantly increases potential payouts, even as the company implements widespread layoffs and reduces stock options for its employees. According to a recent company filing, executives could now earn annual bonuses of up to 200% of their base salary, a substantial increase from the previous 75% cap.
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The decision, approved by Meta’s board of directors on February 13th, was justified by claims that executive compensation was below the 15th percentile compared to rival companies. Notably, CEO Mark Zuckerberg is excluded from this new bonus structure.
However, this move coincides with a reported 10% reduction in annual stock option distributions for thousands of Meta employees, as reported by The Financial Times. The exact reduction varies depending on employee location and role, but Meta has not provided further details.
These changes occur against a backdrop of ongoing layoffs, impacting 5% of Meta’s global workforce. This restructuring comes despite the company’s strong financial performance, with shares up nearly 50% year-over-year and a 21% increase in fourth-quarter revenue to over $48 billion. Meta has eliminated over 20,000 jobs in the past two years.
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CEO Mark Zuckerberg previously stated that a “leaner org will execute its highest priorities faster,” emphasizing increased productivity and fulfilment. However, the juxtaposition of executive bonuses and employee layoffs has drawn criticism, with some viewing it as contradictory to the company’s stated goals.
The new executive bonus plan and the reduction in employee stock options raise questions about Meta’s priorities and its commitment to employee morale. The company’s actions highlight the complex dynamics between executive compensation, workforce management, and shareholder value in the technology sector.
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