TLDRs;
- Meta trims stock awards by 5% for most employees while rewarding top performers more generously.
- Company plans $130B in 2026 capital expenditures, primarily for AI infrastructure and data centers.
- Meta shifts equity focus to elite AI talent, widening pay gaps across the tech industry.
- Despite pay cuts, employee retention remains stable amid high overall compensation and competitive market.
Meta Platforms (NASDAQ: META) has reportedly cut annual stock awards for most employees by about 5 percent for the second year running. Sources familiar with the matter say this follows a roughly 10 percent reduction in 2025. While these cuts apply to the majority of staff, the company has simultaneously enhanced incentives for top performers, increasing rewards for employees who deliver exceptional results.
The equity adjustments come as Meta’s stock edged up modestly, gaining approximately 0.4% in early trading, reflecting investor caution amid broad employee compensation cuts. Company insiders indicate that the reductions are part of a broader strategy to balance workforce pay with heavy investments in next-generation technology and AI infrastructure.
$130 Billion Capital Push Drives Strategic Decisions
Meta is set to invest between $115 billion and $135 billion in 2026 on infrastructure, focusing heavily on AI systems and new data centers. This marks a sharp increase from the $69.7 billion spent on property and equipment in 2025. Analysts say the aggressive spending, particularly at Reality Labs, which recorded a $19.2 billion operating loss last year, has prompted the company to tighten stock awards for the broader workforce.
“By reducing broad stock grants while rewarding top performers, Meta can maintain cost discipline while continuing its AI expansion,” said one industry observer.
Investors have reacted cautiously, with the stock inching upward as the market digests the implications for both margins and long-term growth.
Focusing Rewards on Elite AI Talent
The equity adjustments reflect a growing trend among major tech firms to concentrate compensation on employees who directly contribute to high-value AI projects. Meta’s performance review system now prioritizes top engineers and AI developers, giving them larger potential rewards compared with the broader workforce.
Advertising revenue remains strong, up 24 percent year-over-year in Q4 2025, suggesting the company can still generate robust cash flow even as stock awards shrink for many employees. The company’s approach aims to retain top AI talent amid fierce competition from rivals also investing billions in machine learning and data center infrastructure.
Employee Sentiment and Market Reaction
Employee reactions have been mixed. Some workers expressed frustration on anonymous message boards over the repeated equity cuts, while others suggested that competitive pay levels and limited alternatives in the tech job market make them unlikely to leave. Meta has declined to comment publicly on the adjustments.
Market analysts note that while broad stock cuts can help manage near-term costs, the long-term success of Meta’s AI projects will heavily depend on retaining elite talent. The strategy of concentrating rewards on high performers could create larger pay disparities but is designed to maximize returns on the company’s unprecedented capital expenditures.
Meta’s stock has responded modestly to the news, inching upward as investors weigh the implications of reduced equity for most employees against record spending on AI infrastructure. The company appears to be betting that the combination of disciplined cost management and targeted rewards for top talent will sustain growth in a competitive tech landscape.
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