Meta executive are all set to get bigger bonuses as the company has approved a plan that could give them up to 200% of their base salary. The report of Meta leadership pay rise was as per an SEC filing submitted on Thursday. Meta said it has approved “an increase in the target bonus percentage” for its annual bonus plan for executives as per the SEC filling.
(Image Credit: meta)The updated bonuses to the Meta executives does not apply to Meta CEO Mark Zuckerberg. This is not uncommon since CEO’s compensation is focused more on stock options.
Meta executive bonuses
The Meta executive officers could earn bonuses going upto 200% of their base salary as per the pay raise plan. This is up from the 75% they earned previously.
A committee of Meta’s board of directors approved the change in the bonus. The changes was finalized on February13 after determining that the “target total cash compensation” for its executives “was at or below the 15th percentile of the target total cash compensation of executives holding similar positions” at peer companies.
“Following this increase, the target total cash compensation for the named executive officers (other than the CEO) falls at approximately the 50th percentile of the Peer Group Target Cash Compensation,” the filing said.
There has been on immediately respond by a Meta spokesperson regarding this.
Meta layoffs
Meta leadership pay raise comes just a week after it announced layoff of 5% of its overall workforce, which would amount to nearly 4,000 employees. As per the social media giant, the layoffs will affect its lowest performers.
Meta cuts employee stock option
Meta also slashes the stock options for employee. Its annual distribution of stock options was cut by about 10% for thousands of employees as per a report. The report also added that the stock-option cut may differ based on where the workers live and their position at the company.
Meta stock
Meta share price is up over 47% over the past year. The stock closed at $694.84 on Thursday, underscoring investor enthusiasm that for it’s growing sales in the digital advertising market and the potential for its AI investments to eventually generate big returns.
Earlier in January Meta said its Q4 revenue grew 21% year over year to $48.39B.
