Adapted by:
Rubén Andrés
WriterWriter at Xataka. I've been working remotely for more than a decade and I'm a strong advocate of technology as a way to improve our lives. Full-time addict of black, sugar-free coffee.
Karen Alfaro
WriterCommunications professional with a decade of experience as a copywriter, proofreader, and editor. As a travel and science journalist, I've collaborated with several print and digital outlets around the world. I'm passionate about culture, music, food, history, and innovative technologies.
Meta CEO Mark Zuckerberg continues his push to streamline the company’s structure and strengthen its position in AI development. While previous restructuring efforts included laying off 5% of the workforce, the latest change is financial—rewarding top executives while cutting incentives for the broader workforce.
According to a recent filing with the Securities and Exchange Commission (SEC), Meta has significantly increased the annual bonus potential for its executives. Under the revised plan, senior managers can now earn up to 200% of their base salary in bonuses—more than double the previous cap of 75%.
More Incentives for Executives, Less for Employees
Zuckerberg himself isn’t affected by this change. As CEO and founder, his compensation follows a separate structure, with a nominal salary supplemented by a customized bonus package.
The timing of this decision has sparked tension among employees, particularly following Meta’s dismissal of 3,600 workers, reportedly due to poor performance. Despite the job cuts, Meta remains financially strong, reporting a 21% profit increase in its latest earnings release.
The board of directors approved this executive bonus increase to make Meta more competitive, as its salary levels were previously “at or below the 15th percentile of the target total cash compensation of executives holding similar positions.”
With this adjustment, the target total cash compensation for the named executive officers (excluding the CEO) now aligns with approximately the 50th percentile of their peer group, according to Meta’s filing with the SEC.
However, the boost for executives coincides with a 10% reduction in stock-based compensation for employees—a move first reported by the Financial Times. The cut will impact thousands of workers, reducing the number of shares they receive on top of their salaries. This comes at a time when Meta’s stock has surged 47% over the past year, making those shares even more valuable.
Image | Mariia Shalabaieva (Unsplash)
Related | Mark Zuckerberg Threatens to Fire Employees Who Leak Information. We Found Out Because It Was Leaked
Log in to leave a comment