Meta Platforms Inc. is implementing a new stock options plan for several key executives as part of its strategy to retain top talent amid increasing pressure to excel in the artificial intelligence sector. The executives targeted for these incentives include Chief Financial Officer Susan Li, Chief Technology Officer Andrew Bosworth, Chief Product Officer Christopher Cox, and Chief Operating Officer Javier Olivan. Notably, CEO Mark Zuckerberg is not included in this incentive plan.
The urgency behind this initiative is underscored by a high strike price for the stock options and a short timeline for achieving the outlined goals, reflecting Meta’s critical need to demonstrate progress in a rapidly evolving AI landscape. While competitors such as OpenAI, Anthropic, and Google have successfully introduced popular AI models and capabilities, Meta has faced challenges in establishing a consistent strategy. The company is poised to invest up to $135 billion in capital expenditures this year.
A spokesperson for Meta characterized the effort as a significant gamble for the firm. “These pay packages will not be realized unless Meta achieves massive future success, benefiting all of our shareholders,” the spokesperson remarked. The terms of the stock options stipulate that there is value only if the company’s share price significantly surpasses the exercise price. This plan sets an unusually ambitious five-year timeline for the targeted milestones.
Currently, Meta’s stock price has declined approximately 4% over the past year, ranking it below its major technology counterparts, with the exception of Microsoft, which has experienced a 5% drop. In contrast, Alphabet has seen its stock surge by 73%, thanks in part to the popularity of its Gemini AI portfolio.
For the first round of stock options to be activated, Meta’s share price must achieve $1,116.08—a staggering 88% increase from its closing price on Tuesday. This milestone would give the company a market capitalization of approximately $2.82 trillion. The price required for the subsequent tranche is set at $1,393.87, with subsequent tranches escalating significantly, culminating in a target of $3,727.12, which would elevate the company’s market value beyond $9 trillion.
In a recent restructuring effort, Meta has been overhauling its AI unit following the disappointing reception of its Llama 4 family of AI models among third-party developers. As part of this transformation, the company invested $14.3 billion in Scale AI in June and brought on the startup’s CEO, Alexandr Wang, to lead its AI efforts under a new division named Meta Superintelligence Labs. Reports have indicated that Meta is also working on a successor to its Llama models, known internally as the Avocado project.
As Meta navigates these challenges, the company aims to reclaim its competitive edge in the AI sphere while also carefully managing its talent and investor expectations.
