Meta Cuts Employee Stock Bonuses to Fund Massive AI Spending Surge
Meta Platforms Inc. has implemented a strategic reduction in Restricted Stock Unit (RSU) grants for a significant portion of its workforce.
This move, effective as of February 2026, marks the second time in recent years that the social media giant has trimmed equity-based compensation as it redirects massive capital toward artificial intelligence infrastructure and specialized talent.
Pivot to AI Infrastructure
The decision comes as Meta faces mounting pressure to justify its multi-billion dollar investments in “Llama” models and the data centers required to run them.
By trimming equity awards for mid-level and non-specialized roles, the company is attempting to balance its ballooning capital expenditures.
CEO Mark Zuckerberg has signaled that 2026 will be a year of “disciplined efficiency,” where resource allocation is prioritized for teams building the next generation of physical AI and generative tools.
Impact on Meta Employee Compensation
Traditionally, RSUs have been a cornerstone of Meta’s “Total Rewards” package, often accounting for 30% to 50% of an engineer’s total pay.
The recent trims involve:
- Lowering the target value for annual “refresher” grants.
- Tightening performance-based multipliers.
- Shifting a larger share of the bonus pool toward high-priority AI divisions.
While base salaries remain competitive, the reduction in stock awards has sparked internal debate.
Employees in “legacy” divisions, such as the core Facebook app and non-AI advertising products, have seen more aggressive cuts compared to their counterparts in the GenAI and Reality Labs departments.
Balancing Investor Expectations
Wall Street has reacted cautiously to Meta’s spending surge.
Analysts note that Meta’s AI-driven ad targeting has boosted revenue. However, the cost of maintaining a leadership position in AI remains unprecedented.
Meta aims to preserve its operating margins and maintain a “lean” organizational structure following the mass layoffs of 2023 and 2024.
The company achieves this by controlling headcount costs through reduced stock dilution.
The company is betting that the long-term value of its AI ecosystem will eventually drive stock prices higher.
This growth is expected to offset the lower volume of shares granted to employees.
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