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Meta lowers bonus pay for some employees based on performance

By Nithya Bose in US business news, posted March 29, 2023

Meta wants to reduce bonus payouts and assess staff performance frequently to achieve its “year of efficiency” goals.

The Facebook owner said some employees would receive a “met most expectations” rating in their 2023 year-end reviews, in an internal memo to managers.

Those employees would get a lesser percentage of their bonus and restricted stock award in March 2024.

Meta has also lowered the bonus multiplier for that grade from 85 to 65 percent.

These major changes are happening amid massive headcount reductions, with Meta recently announcing additional 10,000 layoffs.

The memo said: “We understand that while this is a significant change that might disappoint some people, it aligns with our continued focus on maintaining a high-performance culture.”

Meta would also shift performance reviews to twice a year.

In February, CEO Mark Zuckerberg called 2023 the “year of efficiency.”

The memo said: “These updates reflect changes we’re making based on what we learned about the process in 2022 and what we’re optimizing for in the year ahead.”

The assessment process will begin in June and end in July.

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Meta is joining the growing list of tech companies striving to cut employee ranks and slash costs.

Amazon, Microsoft, Salesforce, and others have announced restructuring measures, including job losses.

The midyear review has a three-point grading system that categorizes employees as performing significantly above expectations, at or above expectations, or below them.

Source: The Wall Street Journal

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