COMP NEWS – A year after slashing its workforce by 22%, Meta is giving its remaining workforce boosted bonuses after the company posted a record-breaking quarter.
Meta Platforms Inc. has reportedly decided to increase its employee bonuses following a stellar fourth quarter. The company, previously known as Facebook, has witnessed significant growth in revenue, profits, and user base.
What Happened: Considering the company’s exceptional performance in the fourth quarter, Meta will be raising its annual performance bonuses for employees by 1.5 times the original amount, reported Business Insider, citing two people familiar with the company.
The bonuses, based on individual performance rankings, will be disclosed to employees this month and paid out in March. This increase in bonuses comes as a relief to employees who have weathered layoffs and stringent performance reviews.
Meta did not immediately respond to Benzinga’s request for comments.
Despite a 22% reduction in headcount over the past year and intensified performance reviews, Meta’s employees will now share in the company’s financial resurgence.
An individual Meta employee’s bonus is determined by their internal level and performance. Meta establishes a baseline bonus for each employee, ranging from 10% to 20% of their base salary, depending on their job title and level.
This baseline bonus is then increased based on the individual’s annual performance ranking.
Meeting all expectations results in receiving the baseline bonus, exceeding expectations leads to a 25% bonus increase, greatly exceeding expectations results in a 65% bonus increase, and redefining expectations leads to a 150% bonus increase, the report noted.
In addition to employee bonuses, Meta CEO Mark Zuckerberg is set to receive a $700 million payout himself as part of Meta’s new dividend.
Why It Matters: Meta’s stock hit an all-time high following the fourth-quarter results, leading to a substantial increase in Mark Zuckerberg’s wealth. The CEO is reportedly set to receive a $700 million annual payout from Meta’s new dividend, further underlining the company’s financial success.
Meta’s remarkable performance in the fourth quarter has been a key driver of this financial success. The company’s revenue and earnings per share exceeded analyst estimates, leading to a surge in stock prices and an increase in Zuckerberg’s wealth.
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