• Meta has authorized a new incentive plan allowing executives to earn bonuses of up to 200% of their base salaries.
• This announcement coincides with the company’s decision to downsize its workforce by approximately 4,000 positions.
• CEO Mark Zuckerberg stated that the focus is on reducing the number of low-performing employees.

Meta has recently revealed a new compensation plan that could enable its executives to receive bonuses as high as 200% of their annual base pay, as detailed in an SEC filing submitted on Thursday.

The filing indicates that the bonus structure is designed to provide “variable cash incentives” that will “encourage executive officers to concentrate on key company objectives and reward them depending on business performance and accomplishments.”

Through this new plan, the potential bonus allocation could rise from 75% to 200% of base pay, according to the company’s statements.

This adjustment in bonuses does not extend to Mark Zuckerberg, Meta’s CEO, as executive compensation often varies, with a greater emphasis on stock options for chief executives.

A representative from Meta did not provide immediate feedback on the announcement.

The filing explained that the company’s Compensation Nominating and Governance Committee approved this alteration following an evaluation of market data relating to executive compensation. They found that their executives’ target total cash compensation fell at or below the 15th percentile compared to similar roles in the industry.

The newly established target aims to position executive compensation in the 50th percentile of the market, per the filing.

This development comes in light of another wave of layoffs at Meta this month, with plans to cut around 5% of its workforce, translating to nearly 4,000 jobs.

Zuckerberg explained that these layoffs are directed at addressing “low-performing” employees as the company seeks to streamline operations during a challenging year while also investing significantly in artificial intelligence.

However, several former employees expressed surprise at the layoffs, sharing that they had recently received an “At or Above Expectations” rating during Meta’s midyear reviews in 2024.

“I was quite shocked when I received the notification, especially since I have a solid track record and no signs of performance issues over the last six months,” remarked one impacted employee.

A Meta spokesperson previously commented to Business Insider, saying, “Having a history of meeting or exceeding expectations does not guarantee ongoing performance. Our employees are held accountable within a high-performance culture focused on clear goals.”