Meta Platforms, Inc. (NASDAQ:META) more than doubled its bonus plan for company executives after announcing layoffs for about 3,600 employees just last month.
The Details: According to an SEC filing, on Feb. 13, Meta approved a new bonus structure that raises the annual target bonus amount from 75% of each named executive officer's base salary to 200% of the base salary.
The bonus structure excludes CEO Mark Zuckerberg, according to the filing.
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The move to increase bonuses for Meta's executives comes after the company announced in January that it would be cutting 5% of its workforce. That’s about 3,600 employees.
Meta described the cuts as "performance terminations" aimed at improving efficiency.
“I’ve decided to raise the bar on performance management and move out low-performers faster,” Zuckerberg wrote in an internal memo published by Bloomberg.
Former Meta employees spoke out on social media. They claim that some high performers, including those on parental and medical leave, were unfairly targeted in the layoffs.
“Meta is now the cruelest tech company out there,” a former employee posted on Blind, an anonymous forum for tech industry insiders.
The backlash does seem to have affected Meta's stock, which ran on a 20-day winning streak just after the layoffs were announced.
In the 20 trading sessions between Jan. 16 to Feb. 14, Meta's stock rose 20.22%, and the company added over $350 billion in market capitalization during this period.
Price Action: According to Benzinga Pro, Meta shares ended Friday's session down 1.62% at $683.55 amid a broad market selloff.
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