Meta Sets $9 Trillion Market Cap Target to Retain Talent: First Stock Options Grant Since IPO, Comparable to Musk's Plan but Half the Timeline

According to 1M AI News monitoring, Meta has launched a new stock option incentive plan. Executives can only realize the full value if the company’s market capitalization surpasses $9 trillion before 2031, representing a 500% increase from the current approximately $1.5 trillion. This is the first time Meta has granted stock options to executives since its IPO in 2012.

The plan covers six core executives: CTO Andrew Bosworth, Chief Product Officer Chris Cox, COO Javier Olivan, CFO Susan Li, Chief Legal Officer C.J. Mahoney, and Vice Chairman Dina Powell McCormick. CEO Mark Zuckerberg is not included. The options vest in multiple tiers, with the lowest tier requiring the stock price to reach $1,116.08 (an 88% increase from current levels, corresponding to a market cap of about $2.82 trillion), and the highest tier at $3,727.12 (corresponding to a market cap exceeding $9 trillion). Meta has also increased RSU grants for some executives.

A Meta spokesperson described this as a “big gamble,” stating, “These compensations will only be realized if Meta achieves tremendous success and all shareholders benefit.”

In comparison, Tesla’s compensation plan approved last fall was valued at up to $1 trillion, requiring the company’s market cap to grow from $1.2 trillion to $8.5 trillion within 10 years. Meta’s plan demands a nearly equivalent increase but within half the time. The competition for AI talent is driving up Meta’s stock-based compensation costs: by 2025, cash expenses related to employee stock awards will consume 96% of the company’s free cash flow, amounting to $42 billion; of the 40 million shares repurchased annually, 90% are to offset dilution caused by employee stock awards.