Meta cuts staff stock awards for a second straight year
Financial Times
February 19, 2026
AI-Generated Deep Dive Summary
Meta has announced a 5% reduction in equity rewards for most employees, marking the second consecutive year of such cuts following even larger reductions last year. This decision reflects broader financial challenges faced by the company, with management opting to align spending with current business conditions. While executives may still receive performance-based bonuses, rank-and-file employees are bearing the brunt of these changes, which could impact morale and retention.
This move is significant for several reasons. Firstly, it signals a shift in Meta's compensation strategy, potentially affecting its ability to attract and retain top talent. Employees were previously hopeful that post-pandemic economic recovery might lead to increased rewards, but instead, they face continued belt-tightening. This could undermine employee satisfaction and loyalty, particularly among those who have invested significant time and effort into the company.
Investors are also keeping a close watch on these developments. Equity awards typically make up a substantial portion of compensation packages at tech companies like Meta, influencing both employee motivation and overall financial performance. The reduction underscores Meta's efforts to manage expenses amid economic uncertainties, though some stakeholders may view it as a potential red flag for long-term stability.
Moreover, this decision could set a precedent for other tech firms grappling with similar challenges. As the industry navigates
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Originally published on Financial Times on 2/19/2026