Meta Platforms (META) has reportedly cut its yearly distribution of stock options by about 10% for many of its employees, despite the company trading at record highs this month. According to the Financial Times, the reduction affects tens of thousands of employees who receive equity refreshers as a significant part of their compensation package, alongside base salaries and annual bonuses.
The stock options typically “vest” every three months over four years, and this year, employees have been told they would receive roughly 10% less equity. The precise reduction varies depending on factors such as location and job level within the company. Meta did not respond immediately to a request for comment on the matter.
The decision comes at a time when Meta’s shares have been on a strong upward trajectory. The company has seen substantial gains since January 17, partly driven by the Supreme Court’s decision to uphold a law banning TikTok in the U.S. and CEO Mark Zuckerberg’s announcement in January that Meta plans to invest up to $65 billion in expanding its artificial intelligence infrastructure.
Despite the stock’s strong performance, Meta’s shares closed down 1.3% at $694.8 on Thursday. Additionally, in late January, the company reported stronger-than-expected fourth-quarter revenue but cautioned that sales in the current first quarter might fall short of expectations, raising questions about the return on its expensive investments in AI.
In another significant move, Meta announced plans to trim 5% of its “lowest performers” and warned employees that further job cuts could be in store to “raise the bar” on performance management. These cost-cutting efforts are aimed at making the company more efficient as it continues its aggressive push into AI.
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