Meta Platforms has cut equity-based compensation for most employees for the second consecutive year, reducing annual stock options payouts by approximately 5% in 2026, according to the Financial Times. This follows a 10% reduction implemented last year as the company continues aggressive investment in artificial intelligence.

Meta employees typically receive annual "equity refreshers" alongside base salaries and bonuses, with some discovering they'll receive 5% less equity this year. The exact reduction varies by role, but the cuts come as Meta signals it could spend up to $130 billion on AI development in 2026. CEO Mark Zuckerberg has been actively recruiting AI talent from competitors to strengthen Meta's position against rivals like OpenAI and Google.

Despite the equity award reductions, Meta is overhauling its performance review system in 2026 to offer greater rewards for top performers, suggesting the company's overall compensation budget has increased. The dual approach of cutting base equity while enhancing rewards for high achievers reflects Meta's strategy to prioritize AI development while maintaining competitive compensation for key talent in the race to develop advanced AI models.