Meta announced in SEC filings that it has awarded stock options to six senior executives for the first time since its 2012 IPO. On the same day, it laid off about 700 employees from Reality Labs, recruiting, sales, and Facebook. These options are only valuable if Meta’s market value hits $9 trillion by March 2031, which is six times its current valuation of about $1.5 trillion. If this target is reached, four of the executives could each earn up to $921 million.
The timing of these announcements did not go unnoticed by employees. For the past two years, Meta’s workforce has dealt with repeated layoffs, reduced stock compensation, and a corporate focus on efficiency. Meanwhile, the executive options suggest leadership is being motivated to pursue an ambitiously high growth goal. If reached, this goal would make Meta the world’s most valuable company.
The six executives are Andrew Bosworth (CTO), Chris Cox (Chief Product Officer), Javier Olivan (COO), Susan Li (CFO), Jennifer Newstead (Chief Legal Officer), and Naomi Gleit (Head of Product). Bosworth, Cox, and Olivan might receive up to $921 million each if all options vest, with Li’s package valued at up to $161 million. Mark Zuckerberg is not included. The options vest in tranches, with the first requiring Meta’s stock to double. If no tranches vest, the awards expire in March 2031.
Meta presented these grants as retention tools due to high market demand for AI talent. The AI sector is highly competitive, with Meta offering up to $300 million over four years to retain top AI researchers, competing with OpenAI, Google DeepMind, and Anthropic. Losing a top executive now could be costly for Meta.
A $9 trillion valuation implies roughly 35% annual growth over five years. The current record is approximately $3.5 trillion by Apple. To surpass this, Meta focuses on AI, planning capital expenditure of $115—$135 billion in 2026, mainly for AI infrastructure. This effort is intended to transform its advertising business, create products in augmented and virtual reality, and open new revenue streams.
Meta’s financials reveal the challenge, as 2025’s stock-based compensation costs reached around $42 billion, nearly matching its $43.6 billion free cash flow. These expenses, although non-cash, lead to real costs in tax and dilution offset. If stock awards take almost all its free cash flow, it limits error margins in growth.
The options announcement contrasts with recent workforce reductions and cuts in stock-based pay for employees, with a 5% reduction in 2025 and a previous year’s 10% cut. Meta’s restructuring over three years led to over 20,000 job cuts. The message seems clear: Top leadership is highly valued, while other staff are considered variable costs.
Comparisons can be drawn with Tesla’s 2018 compensation for Elon Musk, initially $56 billion, later adjusted to $29 billion as legal challenges arose. Both packages tie executive wealth to reaching large valuation targets. Whether Meta’s $9 trillion aim is a strategic goal or a guise to justify the grants is uncertain. Nonetheless, Meta made its largest executive compensation move amid laying off 700 employees, showcasing a crucial decision on talent retention. The laid-off employees might have differing views on the company’s priorities.