Meta is set to reward its top executives with significantly higher bonuses, raising their cash incentives to better align with industry standards. According to a corporate filing, the company’s board approved a plan to increase the “target bonus percentage” for named executive officers from 75% of their base salary to 200%.
This change, effective from the 2025 annual performance period, does not include CEO Mark Zuckerberg. Meta stated that the decision aims to better motivate its leadership team and ensure their compensation is competitive within the tech industry.
The company’s board determined that Meta’s executive pay was lagging behind other major tech firms, sitting at or below the 15th percentile in comparison to peer companies. With this adjustment, their compensation will now align with the 50th percentile. The board’s compensation committee formally approved the increase on February 13, 2025.
Layoffs Amid Financial Growth
The timing of this decision has raised eyebrows, as it comes just days after Meta laid off around 3,600 employees—roughly 5% of its workforce. The layoffs were part of the company’s strategy to streamline operations following Zuckerberg’s declaration that 2025 would be an “intense year” with a strong focus on artificial intelligence (AI) advancements.
While Meta cited “low performance” as the reason for the job cuts, many former employees have publicly challenged this claim. Several laid-off workers shared their experiences on LinkedIn, arguing that they had received positive performance reviews before being dismissed.
“I always asked for feedback and was told I was doing well,” wrote Kaila Curry, a former Meta content manager, in a LinkedIn post. “I was never put on a performance improvement plan, never given corrective feedback, and never told I wasn’t meeting expectations. I simply did my job—and did it well.”
This approach reflects a broader shift in the tech industry, where companies like Microsoft are also adopting strategies that target employees deemed underperforming rather than implementing mass layoffs solely for cost-cutting. Despite these job cuts, Meta has indicated that some of the roles will eventually be refilled.
Strong Revenue and AI Investments
Despite the layoffs, Meta’s financial performance remains solid. The company reported a 21% year-over-year revenue increase in Q4 2024, reaching $48.4 billion—exceeding Wall Street projections. The growth was largely driven by Meta’s advertising business and AI-powered product enhancements.
Zuckerberg has positioned 2025 as a pivotal year for the company, emphasizing AI as a major focus. He has expressed confidence that Meta’s AI assistant will soon become the most widely used in the industry.
While the company’s financial strength and AI ambitions paint a promising picture, the decision to boost executive pay while cutting jobs has sparked criticism. The contrast between rewarding leadership and laying off employees has led to debates about Meta’s priorities and corporate ethics as it moves into a transformative year.
