After significant profits, the company announces an increase that jumps to up to 200% of the base salary
The goal a plan that raises the bonuses of its executives to up to 200% of the base salary, shortly after making layoffs that impacted about 3.6 thousand employees, or 5% of their workforce. The decision does not include Mark Zuckerberg, CEO of the company.
The measure was taken after the company reports significant profits in the last quarter. According to the goal, the goal is to encourage executives to focus on the company’s priorities and reward them for the results obtained.
The goal justified the increase in the target bonus from 75% to 200% of the base salary, arguing that a comparative analysis with other companies in the technological sector showed that the total cash remuneration of its executives was below or in the 15th percentile. With this change, the company aims to position the remuneration of its executives in the 50th percentile of the group of peers.
The approval of this increase in bonus by the Committee of the Goal Board of Directors occurred in a context of significant job cuts. The company described layoffs as a strategy to eliminate “Low performance employees”although many of those affected have contested this classification, claiming to have received positive evaluations and not formally informed about performance problems.
The AI (Artificial Intelligence) target strategy and promise substantial investments in this area was highlighted by Zuckerberg as fundamental to the company’s future.
