Meta Platforms has cut back on its yearly distribution of stock options by about 10 per cent for tens of thousands of employees despite the social media giant trading at record highs this month, the Financial Times reported on Thursday.
Employees receive equity refreshers every year that make up the majority of their remuneration, alongside base salaries and annual bonuses, the FT reported. These stack and “vest” every three months over four years.
Most employees have been told they would receive about 10 per cent less equity this year, the FT reported, citing several people familiar with the matter.
The exact reduction will depend on where the employees are based and their level within the organization, the report said.
Meta did not immediately respond to a Reuters request for comment.
The social media giant’s shares have been on a winning streak beginning January 17, after the Supreme Court upheld the law banning TikTok in the U.S., even though President Donald Trump signed an executive order to delay its enforcement.
The gains were also helped by CEO Mark Zuckerberg saying in January that Meta plans to spend as much as $65 billion this year to expand its AI infrastructure.
Meta’s shares closed down 1.3 per cent at $694.8 on Thursday.
In January, the Facebook parent said it would trim about 5 per cent of its “lowest performers” and plans to hire for the impacted roles this year.
Zuckerberg has also warned employees about more such job cuts this year to “raise the bar” on performance management.
It beat Wall Street expectations for fourth-quarter revenue in late January, but said sales in the current first quarter might not meet estimates, sending mixed signals about how its bets on pricey artificial intelligence-powered tools are paying off.
