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Meta Platforms has reduced its annual distribution of stock options by approximately 10% for many employees, even as the social media company experiences record-high trading this month, according to a report by the Financial Times on Thursday.
Employees typically receive equity refreshers each year, which constitute a significant portion of their overall compensation, in addition to base salaries and annual bonuses. These equity awards accumulate and “vest” every three months over a four-year period.
Most employees have been informed that their equity allocation will be about 10% lower this year, as reported by the FT, citing sources familiar with the situation.
The specific reduction will vary based on the employees’ location and their position within the company, the report indicated.
Meta has not provided a response to Reuters regarding the Financial Times report.
In a separate announcement, Meta disclosed in a regulatory filing on Thursday that it has approved a new plan to increase the target bonus for executive officers to 200% of their base salary, up from the previous 75%.
This revised bonus structure will not apply to the company’s CEO, Mark Zuckerberg, as noted in a filing with the U.S. Securities and Exchange Commission.
Earlier this year, the parent company of Facebook announced plans to reduce its workforce by about 5% among its “lowest performers” and intends to fill the affected positions later this year.
Meta is also set to invest up to $65 billion in capital expenditures this year.
Zuckerberg has cautioned employees about the possibility of further job cuts this year to enhance performance management standards.
The company’s shares have been on an upward trajectory since January 17, following the Supreme Court’s decision to uphold a law banning TikTok in the U.S., despite an executive order from President Donald Trump delaying its enforcement.
The stock’s rise has also been bolstered by Zuckerberg’s announcement in January regarding Meta’s plans to allocate as much as $65 billion this year to bolster its AI infrastructure.
On Thursday, Meta’s shares closed down 1.3% at $694.8.
While the company exceeded Wall Street’s expectations for fourth-quarter revenue in late January, it indicated that sales in the upcoming period may face challenges.
(Newsroom staff only edited this story for style from a syndicated feed)
