Meta’s new stock option plan and what it means for its AI push

Meta Platforms has introduced a new stock option scheme aimed at its senior leadership team, intending to retain essential talent in the face of escalating competition in the artificial intelligence sector. This incentive plan includes key executives such as Chief Financial Officer Susan Li, Chief Technology Officer Andrew Bosworth, Chief Product Officer Chris Cox, and Chief Operating Officer Javier Olivan, as per regulatory filings. Notably, Chief Executive Mark Zuckerberg is excluded from this initiative. The stock options are designed to vest only if the company achieves significant stock price targets within a set timeframe, aligning executive compensation with the creation of shareholder value. Specifically, for the lowest tier of options to activate, Meta's stock must increase by at least 88.2%, reaching a price of $1,116.08 per share. The most ambitious tier requires a staggering sixfold increase, with a target of $3,727.12 per share. As of March 24, Meta's shares were priced at $592.92. Meta has established February 14, 2028, as the deadline for these stock price targets. Should the company fail to meet these milestones, unvested options will be released in phases until August 15, 2030, with any unexercised options expiring entirely by March 2031. In addition to the stock options, the majority of executives will also benefit from an increase in restricted stock awards, amounting to $170 million based on the last closing price, which will vest quarterly. The motivation behind Meta's stock options for its top executives is to secure talent during a period of fierce competition in AI. Rivals such as OpenAI, Anthropic, and Google have rolled out notable AI products, while Meta is still refining its strategic approach. The company dedicated much of 2025 to reorganizing its AI initiatives after its Llama 4 models did not garner significant developer interest. Furthermore, Meta invested $14.3 billion in Scale AI and appointed its founder, Alexandr Wang, to spearhead the new Meta Superintelligence Labs. Concurrently, Meta is offering lucrative compensation packages to attract leading AI researchers, with plans to invest up to $135 billion in AI infrastructure by 2026.