Meta Platforms Inc. META 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.
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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.
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.
Previously, it was reported that Zuckerberg’s wealth increased by $14.3 billion year-to-date, making him the top gainer among the world’s wealthiest individuals, as per the Bloomberg Billionaires Index.
As of Thursday night, his total wealth amounted to $142 billion, ranking him as the fifth richest person globally. However, with Meta shares experiencing a surge, Zuckerberg could swiftly ascend into the top four positions.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Meta CEO Mark Zuckerberg. Photo by DANIEL CONSTANTE on Shutterstock
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