Meta approved a plan that could allow executives to earn a bonus of up to 200% of their base pay.
The move comes the same month the Meta says it plans to reduce its workforce by about 4,000 employees.
Meta also trimmed the value of annual equity refreshers some staff receive by about 10%, sources told BI.
Meta approved a plan that could give company executives a bonus of up to 200% of their base salary, according to an SEC filing submitted on Thursday.
The company said in the filing that the bonus plan provides “variable cash incentives” designed to “motivate its executive officers to focus on company priorities and to reward them for company results and achievements.”
The plan would allow for an increase the bonus package from 75% to 200% of base pay, the company said.
The bonus boost would not apply to Meta CEO Mark Zuckerberg. This is not an uncommon practice since chief executive compensation can be structured differently, focusing more on stock options.
Meta also recently trimmed the value of annual equity refreshers some staffers receive by about 10%, according to two people familiar with the matter who spoke with BI but asked not to be identified as they weren’t authorized to speak with the media.
The reduction in the total amount of restricted stock units, or RSUs, means some employees would receive about 10% less in the stock refreshers each quarter this year that vest over a four-year period.
That means, for example, if an employee previously received $220,000 in stock refreshers to vest over four years, they would now get about $200,000 worth of RSUs over the same period. Equity refreshers often form a significant part of workers’ remuneration alongside salary and bonuses.
A Meta spokesperson did not immediately respond to a request for comment.
In the SEC filing, the company wrote that its Compensation Nominating and Governance Committee approved the change after analyzing market data for executive compensation. They determined the target total cash compensation for their executives “was at or below the 15th percentile of the target total cash compensation of executives holding similar positions.”
The new target puts the compensation in the 50th percentile, according to the filing.
The approval comes amid another round of job cuts at Meta this month. The company said it aims to eliminate about 5% of its workforce, which would amount to nearly 4,000 employees.
Zuckerberg said the cuts were meant to target “low performers” as the company looks to streamline its operations in “an intense year” and invest heavily in artificial intelligence.
