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Meta has reduced stock options for tens of thousands of employees by about 10%, despite its stock reaching an all-time high this month, according to reports.
In addition to base pay and annual incentives, a significant part of employees’ compensation at Meta comes from equity refreshers, which are granted annually. These stock options vest gradually over four years, with allocations released every three months.
According to the reports, which cited many sources familiar with the situation, the majority of workers have been informed that they will earn approximately 10% less equity this year.
The report stated that the specific cut will be based on the employees’ level of position and the location of their office.
Reports indicate that Meta has not responded to requests for comment on the matter.
As a separate matter, Meta said in a regulatory filing on Thursday that the firm has approved a plan to enhance the target bonus for executive officers from 75% of base salary to 200% of base salary.
The firm stated in its statement with the U.S. Securities and Exchange Commission that CEO Mark Zuckerberg would not be affected by the revised bonus scheme.
The parent company of Facebook announced in January that it would be laying off around 5% of its “lowest performers” and would be hiring for the positions that would be affected this year.
Facebook CEO Mark Zuckerberg has threatened additional layoffs this year in an effort to “raise the bar” for performance reviews.
Following the Supreme Court’s decision to uphold the ban on TikTok in the United States on January 17, the stock of the social media giant has been steadily rising, despite President Trump‘s executive order delaying its enforcement.
Also, CEO Mark Zuckerberg said in January that Meta plans to spend up to $65 billion this year to build out its AI infrastructure, which helped the company make more money.
At $694.8 a share, Meta’s stock ended the trading day down 1.3%.
Late in January, the company reported higher than expected sales for the fourth quarter, but they also said that sales in the current first quarter might not meet expectations. This sends mixed signs about how well their expensive AI-powered tools are paying off.
