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In the days since cutting 3,600 employees loose, Meta boosted executive bonuses to 200% of base pay, more than double last year’s 75%. The move, revealed in a recent company filing, has caused broad outrage, with critics branding it tone-deaf amid continuing job slashing.
The Compensation, Nominating, and Governance Committee (CNGC) endorsed the bonus increase on February 13, a week after Meta’s layoffs that impacted 5% of its workers. But the new compensation package does not include CEO Mark Zuckerberg.
Meta Defends Bonus Hike Amid Industry Criticism
Meta explained that the move was necessary because executive compensation had slipped behind industry benchmarks and that retaining key talent required a boost. Based on the company’s filing, before the boost, Meta executive compensation stood at or below the 15th percentile of similar positions at competing companies. With the revisions, the firm says compensation now falls at the 50th percentile of industry norms.
A Meta spokesperson said, “After this increase, the target total cash compensation for named executive officers (excluding the CEO) is at about the 50th percentile of the Peer Group Target Cash Compensation.”
Even these explanations have failed to explain why it took so long, as thousands of employees lost their jobs ostensibly under “performance-based” layoffs.
Layoffs and Employee Backlash
Earlier this month, Meta revealed mass layoffs across the globe affecting 3,600 employees, blaming low performance ratings as the major cause. Many of the employees, however, have come forward and publicly refuted this accusation, claiming they were laid off despite achieving performance goals.
“Meta is the cruelest tech company. People were let go for reasons other than performance, including people on approved leave. It’s all about financial gain,” said one former employee.
Another staffer said, “Executives always think they are worth more money no matter what their performance is. While thousands of workers are unemployed and searching for a chance.”
The juxtaposition of rewarding high-level executives while laying off thousands of workers has created anger among current and former Meta staff as well as the general public.
Meta’s Shifting Political and Workplace Culture
Aside from monetary choices, Meta has also been making significant changes in its company policies. It has been reported that Mark Zuckerberg has taken a closer stance with conservative individuals, such as having private dinners with Donald Trump and hiring a Republican to become Meta’s public affairs head.
The company has also curtailed diversity efforts, relaxed content moderation guidelines on Facebook and Instagram, and permitted more types of contentious speech on its platforms, signaling a shift in its corporate policies.
These adjustments, as well as the executive salary increase, have given rise to meta’s leadership direction concerns.
Industry and Public Reaction
Though some industry experts realize that aligning executive pay with industry standards makes sense, they contend that the timing of the announcement is a huge public relations gaffe.
A social media user said, “Adjusting compensation to industry norms is reasonable, but doing it immediately after huge layoffs? That’s a PR fiasco.
Another contributed, “Always more for the top, less for workers. Meta’s leadership is out of touch.”
Meta seems to be determined to go ahead with its restructuring plans, even with the backlash. With constant changes in its corporate culture, executive pay, and labor policies, the company is preparing for long-term financial and strategic rebalancing. But as Meta works through staff discontent, criticism from the public, and political scrutiny, its next steps will be under intense scrutiny by investors, regulators, and the wider tech sector.
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