California, USA – February 25, 2025 – Meta, the parent company of Facebook, has significantly increased the target bonus percentage for its top executives, raising it from 75% to 200% of their base salary—excluding CEO Mark Zuckerberg.

This change, disclosed in a corporate filing dated February 20, 2025, and published on the U.S. Securities and Exchange Commission (SEC) website on Monday, marks a major shift in the compensation strategy of the tech giant.

New Bonus Structure for Top Executives

Previously, Meta’s executives were eligible for a bonus worth 75% of their base salary. However, under the new structure, they can now earn up to twice their salary as a performance-based bonus.

The Compensation, Nominating & Governance Committee (CNGC) approved this adjustment on February 13, with the new bonus system set to take effect for the 2025 performance period.

Meta stated that the move aims to motivate top executives to focus on company priorities and reward them for strong performance.

Justification for the Bonus Increase

According to the filing, the decision followed a market analysis, which revealed that Meta’s executive pay was lagging 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) from 75% of each such named executive officer’s base salary to 200% of each named executive officer’s base salary, effective beginning with the 2025 annual performance period,” the filing stated.

Before the adjustment, Meta’s executive pay ranked at or below the 15th percentile compared to benchmarked companies. The increase now aligns their total cash compensation closer to the 50th percentile.

“The CNGC considered that the target total cash compensation for the named executive officers was at or below the 15th percentile of executives holding similar positions at peer companies,” the statement added.

Meta’s Workforce and Performance Focus

The bonus increase comes shortly after Meta announced in January a five percent workforce reduction, as the company shifted focus to retaining and rewarding top performers.

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

With this adjustment, Meta aims to remain competitive in attracting and retaining top executive talent while driving company performance.