After another round of mass layoffs and reports of slashed stock options for remaining employees, Meta has like clockwork opted to reward its top executives with a substantial bonus increase.
The Facebook giant revealed in a government filing that its Compensation, Nominating and Governance Committee (CNGC) approved a target annual bonus increase for its top executive officers bar CEO Mark Zuckerberg. The bonus was raised from 75 percent of base salary to a whopping 200 percent, effective with the 2025 annual performance period.
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According to Meta’s April 2024 proxy statement [PDF], CTO Andrew Bosworth’s base salary was $945,000. His actual eligible earnings were slightly lower due to the timing of his raise. However, factoring in a 75 percent target bonus and Meta’s 150 percent company performance multiplier for 2023, his total bonus payout amounted to about $1.05 million.
Assuming Bosworth’s salary remains the same, and Meta’s company performance percentage stays at 150 percent in 2025, the new 200 percent target bonus would push his bonus to nearly $3 million. That’s before any stock-based compensation and other add-ons. And he’s not even the highest-paid member of Meta’s named executive team.
For balance’s sake, and some might find this hard to swallow but, $3 million annual cash compensation for a CTO in Bosworth’s position is about right for Silicon Valley; it’s nothing outrageous, relatively speaking. The vast majority of his pay package is in shares; in 2023 for instance, he was awarded more than $20 million in stock. The salary, like for many in his role, is the cherry on top of an enormous cake.
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Some of that bonus cash, though, might be coming from Meta’s latest round of layoffs, which saw around 3,700 people – about five percent of its workforce – axed this month. The cut reportedly targeted low performers, and followed a year in which the biz reported a net income of $62.36 billion, a 59 percent year-over-year increase.
This comes reports surfaced this week that Meta has cut back on its yearly distribution of stock options by 10 percent to most staff, though we do note that the corp’s share price has climbed 10 percent in the past month, and 46 percent for the past year.
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Source: Meta executives’ annual bonuses just got a bit bigger • The Register
The economics of greed – gut the company and grab the money. In the meantime blame people for drinking Starbucks coffee that they can’t pay their rent.
Robin Edgar
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