Meta raises executive bonus target to 200%

Facebook’s parent company, Meta, has raised the target bonus percentage for its top executives—excluding Chief Executive Officer Mark Zuckerberg—from 75 per cent to 200 per centof their base salary.

Previously, these executives were eligible for a bonus worth 75 per cent of their base salary, but under the new structure, they can now earn up to twice their salary as a bonus, depending on performance.

This change was disclosed in a corporate filing dated February 20, 2025, and seen on the US Securities and Exchange Commission website on Monday.

However, development comes after the US blue-chip company announced in January that it had reduced its workforce by about five per cent to focus on top performers.

Meta’s Compensation, Nominating & Governance Committee approved the adjustment on February 13, with the new bonus structure set to take effect for the 2025 performance per.

The tech giant said the move aims to “motivate its executive officers to focus on company priorities and to reward them for company results and achievements.”

Under the revised plan, payouts will be determined by multiplying each executive’s eligible earnings by their target bonus percentage and a company performance factor set by the CNGC, according to the filing.

The committee said the increase follows a market analysis showing that Meta’s executive pay lagged behind industry peers.

“On February 13, 2025, the CNGC approved an increase in the target bonus percentage under the Bonus Plan for each of the company’s named executive officers (other than its Chief Executive Officer (the ‘CEO’)) from 75 per cent of each such named executive officer’s base salary to 200 per cent of each named executive officer’s base salary, effective beginning with the 2025 annual performance period under the Bonus Plan,” the filing stated.

Before the adjustment, the company’s named executive officers had total target cash compensation “at or below the 15th percentile” of executives in comparable roles at benchmarked companies.

The increase moves their compensation closer to “approximately the 50th percentile,” it added.

“In approving this increase, the CNGC considered that the target total cash compensation for the named executive officers (other than the CEO) was at or below the 15th percentile of the target total cash compensation of executives holding similar positions at the peer group of companies that the company benchmarks against for executive compensation purposes,” the filing said.