Meta’s top executives could see a sharp increase in their compensation if the technology giant manages to massively boost its stock price, according to filings the company made with the Securities and Exchange Commission (SEC) on late Tuesday.
The company, which has a market capitalisation of $1.5 trillion, has outlined a new performance-based pay structure that ties executive rewards more closely to the company’s long-term stock performance.
The forms detail a two-part incentive system for six executives of the technology firm, including CTO Andrew Bosworth, CFO Susan Li, chief operating officer Javier Olivan, and chief product officer Chris Cox.
“This is a big bet. These pay packages will not be realized unless Meta achieves massive future success, benefiting all of our shareholders. As with all stock options, there is only value if the share price meaningfully exceeds the exercise price, and in this case, it must be on an exceedingly aggressive 5-year timeline,” a Meta spokesperson told Business Insider.
Stock-based compensation for executives
Meta executives will receive a larger batch of restricted stock units (RSUs) worth about $170 million, vesting quarterly for long-term retention, along with performance-based stock options expiring in March 2031.
The options carry conversion prices ranging from $1,116.08 to $3,727.12 per share. If Meta’s stock reaches the top end, its market cap could exceed $8 trillion.
As of Wednesday’s close, Meta shares traded at about $595, down nearly 3% over the last year.
Is Mark Zuckerberg a part of the compensation plan?
Bosworth, Cox, Li, and Olivan would receive the most options, which would set them up for paydays of up to $2.7 billion; however, this largely depends on how Meta’s stock will rise and how much these executives choose to exercise, according to the Business Insider report.
This latest offering also comes at a time when Meta is weighing major layoffs as it pours billions into artificial intelligence (AI), according to multiple reports.
The deal is structured similarly to the blockbuster pay package awarded to Elon Musk, which granted the Tesla CEO stock worth up to $1 trillion over a decade if he succeeds in increasing the automaker’s market capitalisation sixfold.
However, unlike that arrangement, Meta Platforms’ new compensation plan does not include CEO Mark Zuckerberg, focusing instead on other senior executives.
Who else will be rewarded by Meta?
The other Meta executives who are part of the proposed pay plan are chief legal officer C J Mahoney and president Dina Powell McCormick. Chief accounting officer Aaron Anderson would receive around $3 million in RSUs, but no stock options will be offered, the report said.
Meta has been aggressively ramping up its efforts to bring in more AI talent since last summer, when it announced a ‘superintelligence’ team led by the former CEO of Scale AI, Alexandr Wang. He joined the company after Meta acquired a 50% stake in the startup, valued at $14 billion.
The tech giant has also snapped up several AI-focused startups as part of its push into the space, including AI agent startup Manus and the viral social network Moltbook, according to media reports.
(with wire inputs)
