tech
March 27, 2026
Meta grants executives up to $921M in stock options as it lays off 700
Meta disclosed in SEC filings on Tuesday that it had granted stock options to six of its most senior executives, the first such awards since the company’s 2012 IPO. Hours later, it laid off approximately 700 employees across Reality Labs, recruiting, sales, and Facebook. The options are worthless unless Meta’s market capitalisation reaches $9 trillion by March 2031, roughly six times its current valuation of approximately $1.5 trillion. If it does, four of the six executives stand to earn up to $921 million each.
TL;DR
- Meta granted stock options to six senior executives, the first since its 2012 IPO.
- The options are contingent on Meta reaching a $9 trillion market capitalization by March 2031.
- Four executives could earn up to $921 million each if the target is met.
- Approximately 700 employees were laid off across various departments on the same day.
- The executive stock options are seen as a retention tool for AI talent in a competitive market.
- Achieving the $9 trillion valuation requires significant growth, more than doubling Meta's current market cap.
- Meta is heavily investing in AI infrastructure, committing $115 billion to $135 billion by 2026.
- The company previously cut stock-based compensation for rank-and-file employees and has undergone significant restructuring.
- The juxtaposition of executive rewards and employee layoffs has created tension and criticism.
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