Meta has reduced its annual distribution of stock options by approximately 10% for tens of thousands of employees, despite the company’s shares reaching record highs this month, the Financial Times reported.
Equity refreshers, which employees receive annually as part of their compensation alongside base salaries and bonuses, will see a reduction this year. These stock options, which vest quarterly over four years, form a significant portion of employee remuneration.
Most employees have been informed of a 10% cut in their equity allocations, though the exact reduction varies based on location and position within the company, according to sources cited by the Financial Times.
Separately, the company disclosed in a regulatory filing that it has approved an increase in target bonuses for executive officers to 200% of their base salary, a significant rise from the previous 75%. However, the revised bonus plan does not apply to CEO Mark Zuckerberg, as stated in Meta’s filing with the U.S. Securities and Exchange Commission.
In January, Meta announced plans to trim approximately 5% of its lowest-performing employees, with a strategy to hire for the affected roles later in the year. Zuckerberg has also hinted at additional job cuts aimed at improving performance management within the company.
Meta’s stock has been on an upward trend since January 17, following the U.S. Supreme Court’s decision to uphold a ban on TikTok, despite an executive order by former President Donald Trump delaying its enforcement. The surge has also been bolstered by Zuckerberg’s announcement in January that the company intends to invest up to $65 billion in expanding its artificial intelligence infrastructure this year.
Despite these gains, Meta’s shares closed down 1.3% at $694.80 on Thursday. While the company exceeded Wall Street expectations for fourth-quarter revenue, it has indicated that first-quarter sales might not meet estimates, raising questions about the profitability of its AI investments.
