Meta, the US tech giant, is reportedly increasing the pay of its top executives amid massive layoffs. The company recently approved a plan to increase bonuses for executives from 75% of base salary to up to 200%.

According to a recent filing Meta made with the US Securities and Exchange Commission (SEC), the company's goal is to better align executive compensation with company priorities and industry standards. But the timing is surprising because just a week before the announcement, Meta laid off 3,600 employees, about 5% of its total workforce.

Meta's board of directors defended the move in the filing, saying that before the change, its executives were paid much less than other tech giants.

The company said in the filing that its executives were paid at or below the 15th percentile compared to similar positions at peer companies. The filing also said that increasing compensation to 200% would bring their compensation to around the 50th percentile, making them more competitive in the industry.

Meta is not the only one to make such a decision. Other tech giants have taken similar steps, like Microsoft, which granted CEO Satya Nadella a 63% pay raise shortly after it laid off 1,900 employees in its gaming division.

On top of that, it was reported last week that Meta also reduced the value of annual employee stock options by 10%, even though the company's stock has performed well. This is a big deal, as many employees rely on stock compensation as a significant part of their income.

Not surprisingly, industry experts are divided on whether these pay increases are justified. Some argue that competitive pay is necessary to attract and retain top talent, especially as companies like Meta invest heavily in artificial intelligence and other growth areas. Ensuring executive compensation is in line with industry benchmarks is critical to leadership stability, according to Gallagher's CEO and Executive Compensation Trends Report.

Others warn that the widening pay gap between executives and employees could cause major problems. A report from the Institute for Policy Studies and the Congressional Progressive Caucus Center found that extreme pay disparities can reduce productivity and increase turnover.

Public sentiment also leans against this growing gap — 87% of Americans believe the growing disparity between CEO and worker pay is a problem, according to a Just Capital poll.