Meta’s Executive Bonuses Amid Layoffs

Meta has faced significant backlash for its decision to grant substantial executive bonuses just days following the termination of 3,600 employees. A recent corporate filing reveals that the company’s Compensation, Nominating, and Governance Committee (CNGC) has escalated executive bonuses to 200% of their base salaries, a notable increase from the prior 75%.

Details of the Bonus Increase

Approved on February 13, 2025, this bonus elevation does not extend to CEO Mark Zuckerberg but impacts Meta’s other leading executives. The company justified this adjustment, asserting a necessity to remain competitive within the industry. However, critics are questioning the timing of this choice.

The Company’s Justification

Meta has indicated that its executive compensation was falling behind that of its competitors, stating in their filing: “Before the increase, the target total cash compensation for executives was at or below the 15th percentile compared to those in similar roles at rival firms. Following this increase, their compensation now aligns with approximately the 50th percentile of the industry.”

Reaction to the Raise

The board maintains that enhancing bonuses is crucial for retaining exceptional talent, yet many perceive this decision as an insensible reaction amidst the recent job losses. Meta’s announcement followed a significant reduction of 5% in its workforce, justified by “low performance” parameters. The disparity between executive rewards and employee layoffs has triggered substantial public outrage.

Public Sentiment on Social Media

Frustration has been widely expressed on social media platforms. Comments reflect a shared sentiment, with one user stating: “Executives always believe they deserve more money, regardless of performance. Meanwhile, thousands of employees are out of work looking for opportunities.” Another user remarked: “Always more for the top, less for workers. Meta’s leadership is out of touch.”

Concerns Over Layoff Validity

Some former Meta employees have raised doubts about the legitimacy of the layoffs, claiming that decisions were driven not by performance metrics, but rather as a strategy for cost reduction. One past employee claimed: “Meta is the cruelest tech company. People were laid off for reasons beyond performance, including those on approved leave. It’s all about financial gain.”

Industry Perspective

While certain industry authorities concede that Meta’s executive salaries are now more aligned with its competitors, the timing of this announcement has generated considerable apprehension. A social media contributor expressed: “Adjusting pay to industry standards is understandable, but doing it right after massive layoffs? That’s a PR disaster.”