Meta Platforms Inc has reduced the size of equity-based awards that make up part of most employees' total compensation for a second consecutive year. The company trimmed the annual stock option refreshers by about 5% for many staffers, following an approximate 10% reduction implemented last year.
The equity adjustments coincide with Meta's intensified investment program in artificial intelligence. Company messaging has indicated it could deploy as much as $130 billion toward AI-related initiatives in 2026. Executives have also been active in hiring, including recruiting experienced AI personnel from competing firms.
Employees typically receive annual "equity refreshers" in addition to base salary and yearly bonuses. Reports indicate that some staff members have already been informed they will see roughly 5% less equity this year, while the precise percentage may vary by role and seniority.
Despite the narrower equity refreshers, Meta is adjusting its performance review framework for 2026. The revised system is expected to deliver larger payups for top performers, a change that signals the company has widened its compensation budget in aggregate even as it narrows equity awards for many employees.
The combination of reduced standard equity grants, heavier AI expenditure and targeted reward shifts in performance reviews frames a compensation strategy that reallocates pay to support technological priorities and to concentrate upside on high achievers. The company’s recruitment of AI talent from other firms underscores the priority of building capability quickly while managing overall remuneration costs.
For affected employees, the cut in equity refreshers represents a smaller recurring chunk of long-term incentive compensation. For the broader market and labor pool, the moves demonstrate how a major technology employer is reshaping pay design while pursuing an aggressive AI buildout.
Summary
Meta has implemented a roughly 5% reduction in annual equity refreshers for many employees, following about a 10% cut last year. The company is simultaneously committing to large-scale AI spending and revamping performance reviews to reward top performers more generously.