Despite Meta Platforms (META, Financial) reaching record-high stock prices this month, the company has announced a reduction of approximately 10% in annual stock options for thousands of employees. These stock options, which are a significant part of employee compensation alongside base salary and annual bonuses, vest quarterly over four years. The extent of the reduction varies based on employees' locations and job levels within the company.
Additionally, Meta has approved a new plan to increase executive target bonuses from 75% to 200% of their base salary, although this does not apply to CEO Mark Zuckerberg. Earlier this year, Meta announced plans to cut around 5% of its lowest-performing employees and aimed to hire replacements. Zuckerberg warned of more layoffs to enhance performance standards.
Since January 17, when the U.S. Supreme Court upheld a ban on TikTok operations in the U.S., Meta's stock has been on the rise, despite an executive order by former President Donald Trump delaying the ban's execution. In January, Zuckerberg stated that Meta plans to invest up to $65 billion in expanding its AI infrastructure, further boosting stock prices.
On Thursday, Meta's stock fell by 1.3%, closing at $694.8, but slightly increased by 0.60% in pre-market trading, reaching $699. At the end of January, Meta reported fourth-quarter revenue that exceeded Wall Street expectations, although it warned that first-quarter sales might fall short, raising concerns about the returns on its AI investments.
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