Meta Platforms Cuts Equity Awards Again Amid Massive AI Investment Push

Meta Platforms Inc (NASDAQ: META) has reduced equity-based compensation for most employees for the second consecutive year, according to a report by the Financial Times. The tech giant has trimmed its annual stock option grants by approximately 5% in 2026, following a roughly 10% reduction in 2025. The move comes as Meta ramps up aggressive spending on artificial intelligence to compete with industry leaders such as OpenAI and Google.

The latest cut affects the company’s annual “equity refreshers,” which are stock-based awards granted to employees in addition to base salaries and performance bonuses. While many employees are seeing about a 5% decrease in equity compensation, the exact reduction varies depending on role and performance level.

Meta’s decision to scale back stock awards reflects its broader financial strategy as it channels significant resources into AI development. The company has indicated it could invest up to $130 billion in artificial intelligence initiatives by 2026. CEO Mark Zuckerberg has made AI a top priority, actively recruiting top talent from rival tech firms to strengthen Meta’s competitive position in advanced AI models and infrastructure.

Despite the reduction in equity payouts, Meta has reportedly increased its overall compensation budget. The company is revamping its performance review system in 2026 to reward high-performing employees more generously. This restructuring suggests that while broad-based equity grants are shrinking, top talent may still see substantial compensation growth tied to performance metrics.

Meta’s evolving pay structure highlights the financial balancing act facing major technology companies. As AI spending accelerates and competition intensifies across Silicon Valley, firms like Meta are adjusting employee compensation strategies to fund long-term innovation while retaining critical talent.