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Meta has reduced its annual distribution of stock options by about 10 per cent for tens of thousands of staff despite the social media group trading at record highs this month.
Every year, Meta employees receive so-called equity refreshers, which form the majority of their remuneration, alongside base salaries and annual bonuses. These stack and “vest” every three months over four years, according to people familiar with the matter.
Most employees have been told they would receive about 10 per cent less equity this year, several people said.
The exact reduction might differ depending on where employees are based and their level within the organisation, according to one person familiar with the matter.
The company adjusts equity pay based on industry trends but still aims to offer among the highest remuneration in local markets, the person added.
Meta declined to comment on the matter.
The rare haircut comes despite its shares reaching record highs this month following a 20-session winning streak — the longest on record among the Magnificent Seven tech giants. Meta’s share price is trading at $695, up 16 per cent in the year to date, and nearly 50 per cent higher over the past year.
Chief executive Mark Zuckerberg said on a recent earings call that he intended 2026 to be an “intense” year in which Meta would invest more in artificial intelligence to become the “AI leader”.
Thousands of employees lost their jobs at Meta in 2023 in what Zuckerberg dubbed “the year of efficiency”. Last week, the company cut a further 5 per cent of its staff, targeting those deemed the “lowest performers”.
Critics said the move would hurt the job prospects of those made redundant and created a culture of fear.
Some staffers took to Blind, the anonymous employee messaging board, to discuss the changes, with one sharing a meme suggesting staff might need a union. Another employee told the Financial Times that they felt that, in combination with the performance-related cuts, Meta was “aiming for high attrition in 2026 [and] 2027”.
