Meta has approved a plan to significantly increase executive bonuses just days after cutting five percent of its workforce, according to a filing with the United States Securities and Exchange Commission.
The company’s board of directors approved the move, which raises the target bonus percentage for Meta’s annual executive bonus plan to 200%, up from 75%. The decision was made by the Compensation, Nominating, and Governance Committee and was disclosed in a report signed by Katherine R. Kelly, Vice President and Corporate Secretary at Meta.
The report stated that the Bonus Plan is designed to incentivize executive officers by tying their cash compensation to company performance. Under the plan, payouts are determined by multiplying an executive’s base salary by the newly approved bonus percentage and the company’s performance metrics.