The Financial Times reported on Thursday that Meta Platforms has cut back on giving stock options to tens of thousands of employees each year, even though the stock price of the social media giant is at an all-time high this month.
The FT reported that employees get equity refreshers every year, which are the main part of their pay along with base salaries and yearly bonuses. Over four years, these will stack and “vest” every three months.
Some people who know about the situation told the FT that most workers were told they would get about 10% less equity this year.
The story said that the exact cut will depend on where the workers are located and what level they are in the company.
Parhlo World asked Meta for a response on the FT report, but they didn’t answer.
In a separate filing with the government on Thursday, Meta said that under a new plan, the company has agreed to raise the goal bonus for executives to 200% of their base salary, up from 75% of their base salary before.
It said in a filing with the U.S. Securities and Exchange Commission that the new bonus plan would not apply to Mark Zuckerberg, who is the CEO of the business.
This January, Facebook’s parent company said it would get rid of about 5% of its “lowest performers” and hire new people for those jobs this year.
Zuckerberg has also told his workers that more job cuts are coming this year to “raise the bar” on how they are managed.
The social media giant’s shares have been going up since January 17, when the Supreme Court supported the law that bans TikTok in the U.S., even though President Trump signed an order to delay its enforcement.
Also, CEO Mark Zuckerberg said in January that Meta plans to spend up to $65 billion this year to build out its AI infrastructure, which helped the company make more money.
Meta’s stock price dropped 1.3% on Thursday, ending the day at $694.8.
Also Read: Meta Says That Publishers Will No Longer Get Paid, and Australia is Planning a Big Tech News Tax
In late January, the company reported higher income than expected for the fourth quarter, but said sales in the current first quarter might not meet expectations. This sends mixed signals about how well its expensive AI-powered tools are paying off.
What do you say about this story? Visit Parhlo World For more.
