Meta has introduced a new stock option plan for its top leaders, its first since its 2012 IPO, with payouts that could reach hundreds of millions of dollars per executive, contingent on the company hitting a $9 trillion valuation by 2031.
According to a report by The Wall Street Journal, executives will receive the full benefit of these stock options only if Meta’s market value grows approximately sixfold from its current level of about $1.5 trillion.
The program covers six key leaders: Chief Technology Officer Andrew Bosworth, Chief Product Officer Chris Cox, Chief Operating Officer Javier Olivan, Chief Financial Officer Susan Li, Chief Legal Officer C.J. Mahoney, and President Dina Powell McCormick.
According to an analysis by compensation research firm Equilar, as reported by the New York Times, Bosworth, Cox, and Olivan each stand to receive stock options worth up to $921 million, while Li’s options could reach up to $161 million. CEO Mark Zuckerberg is not part of this compensation plan.
The incentive system has two components: increased restricted stock unit (RSU) grants, which vest on a time-based schedule, and performance-based stock options tied directly to Meta’s share price milestones, as reported by CNBC and Business Insider. Executives must meet both the $1,116.08 share price trigger and the broader $9 trillion market-cap target to realise the full value of their awards, according to SEC Form 4 filings reviewed by Bloomberg.
The aggressive compensation plan reflects the growing competition for AI talent, and arrived the same week Meta laid off approximately 700 employees, many from its Reality Labs division, drawing a sharp contrast between leadership rewards and workforce cuts, as reported by the New York Times and Engadget.
As reported by WSJ, Meta has been spending heavily to attract top AI researchers, with at least one offer potentially totalling $1.5 billion in compensation over multiple years. This has significantly increased the company’s stock-based costs.
In 2025 alone, expenses tied to employee stock awards accounted for 96% of Meta’s free cash flow, or approximately $42 billion, according to Bloomberg. The company also spent heavily on share buybacks to offset dilution caused by these stock grants.
Meta’s approach mirrors a broader trend in Big Tech, where companies are using massive financial incentives to retain leadership in the AI era. The WSJ report notes that similar strategies have been used elsewhere, including at Tesla, where CEO Elon Musk has a compensation package tied to long-term growth targets.
