Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Meta has slashed equity-based awards for the bulk of its employees at a time when the owner of Facebook is ploughing tens of billions of dollars into artificial intelligence projects and infrastructure.
The group reduced its annual distribution of stock options by about 10 per cent for most of its staff, equating to tens of thousands of employees, according to several people familiar with the matter.
Meta’s move to cut a vital component of employee compensation comes as the group embarks on a significant capital spending drive in what chief executive Mark Zuckerberg has described as a “really big year”. Shares in Meta have soared by nearly a fifth in 2025 alone, hitting a record high and outpacing many of the Instagram owner’s Big Tech rivals.
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.
The company had raised its quarterly dividend by 5 per cent last week to just over 52 cents, in another boost for investors.
Zuckerberg said on a recent earnings call that he intended 2025 to be an “intense” year in which Meta would invest to become the “AI leader”. This includes expenditure on big projects, such as data centres, of between $60bn and $65bn in 2025.
Zuckerberg added that he hoped his suite of longer-term AI bets would begin to pay off this year in a highly competitive field, where Meta is battling rivals such as OpenAI and Microsoft.
He has also focused on improving relations with the Trump administration after the president accused the company of censorship.
Last month, Zuckerberg announced that Meta would close its fact-checking programme and ease hate speech moderation. The move was widely interpreted as an effort to appease the new president.
Zuckerberg visited the White House this month to discuss how Meta could support the administration in advancing American tech leadership abroad.
As part of his AI push, Zuckerberg has concentrated on running a leaner company. Thousands of employees lost their jobs at Meta in 2023 in what the chief executive dubbed “the year of efficiency”. Last week, the company cut a further 5 per cent of its staff, targeting those deemed the “lowest performers”.
Some staffers took to Blind, the anonymous employee messaging board, to discuss the compensation 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 “.
Read the full article here
