Meta is paying top executives to hit a $9.5 trillion valuation-and no one’s ever done it before
Fortune • • general
Key Points:
- Meta granted stock options with high exercise prices to five senior executives, requiring a 66% stock price increase to reach the lowest exercise price, with the highest tranche needing a market cap of $9.46 trillion—far exceeding any company’s historical valuation.
- The options, awarded to key executives critical to Meta’s AI ambitions, reflect the company’s aggressive bet on AI as a growth driver and the intensified competition for AI talent.
- CEO Mark Zuckerberg was not part of the recent grants and continues to take a $1 salary, holding a personal stake valued at approximately $230 billion.
- Meta faces challenges including competition from more advanced AI rivals, the forced unwinding of its $2 billion Manus AI startup acquisition, and investor concerns over the return on its substantial capital expenditures.
- Meta is expected to report Q1 revenue of around $55.5 billion, a 31% year-over-year increase, with earnings per share projected at $6.68; ongoing geopolitical tensions and capital spending guidance could influence market reactions.
