Meta Platforms is reducing annual stock option grants for most employees by approximately 5%. This reduction marks the second consecutive year the company has lowered equity-based compensation.
The move aims to reallocate capital toward Meta’s aggressive expansion into artificial intelligence. The company projects capital expenditures to reach between $115 billion and $135 billion for 2026. These funds will primarily support the construction of multiple large-scale data centers for AI infrastructure.
CEO Mark Zuckerberg is prioritizing AI development over other business segments. Meta recently reduced staff within its Reality Labs division to shift resources away from certain virtual reality products. Financial resources are now concentrated on AI and broader metaverse ambitions.