Aligning with Industry Peers
Meta’s board argued that, before the hike, the “target total cash compensation” for executives was “at or below the 15th percentile of the target total cash compensation of executives holding similar positions” at rival companies. The company stated, “Following this increase, the target total cash compensation for the named executive officers (other than the CEO) falls at approximately the 50th percentile of the Peer Group Target Cash Compensation.”
The board insisted the move was necessary to retain top talent and keep compensation competitive within the industry. However, the timing of the announcement has sparked widespread criticism.
Mass Layoffs Ignite Anger Online
The news comes shortly after Meta laid off around 5% of its global workforce, citing “low performance” as the reason for job cuts. The layoffs triggered backlash on social media, with many accusing the company of prioritising executive pay over regular employees’ livelihoods.
One social media user wrote, “Executives always think they are deserving of more money, regardless of their performance. And they rarely think regular workers are deserving of more money.” Another user added, “Always more for the top, less for workers. Meanwhile, thousands are out of work looking for opportunities. I wish we could easily avoid Meta, but it’s hard to avoid in this social media era.”
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Former Employees Speak Out
Beyond public backlash, some former Meta employees have accused the company of unfairly dismissing workers. Many believe the layoffs were not truly performance-related but motivated by cost-cutting measures.Some claim they lost their jobs for reasons other than poor performance, including taking approved leave. “Meta is the cruelest tech company,” one former employee stated, alleging the company was more focused on financial gain than treating its workforce fairly.
The Timing Raises Questions
While some acknowledge that Meta’s executive pay hike brings compensation in line with industry standards, they argue the timing is poor. A social media user commented, “It’s worth noting that the new bonus plan is intended to bring Meta’s executive compensation more in line with industry standards. However, the timing of the announcement has raised eyebrows, given the significant job cuts happening within the company.”
The stark contrast between rewarding top executives and cutting thousands of jobs has intensified scrutiny on Meta’s leadership. As the company navigates this backlash, questions remain about how it will balance profitability with ethical workforce management.
