Meta Drops RSU Refreshers 10% or More
Summary: Fresh off 5% “performance” related layoffs, Meta is making additional changes that will impact survivors. Meta employees are being surprised by smaller RSU refreshers than expected, with 10% cuts in new equity grants across the board in addition to further reductions for those outside the US, and potentially in non-engineering roles.
Over the next few weeks, Meta employees will receive their annual Performance Summary Cycle (PSC) documents, which include ratings, annual raises, and RSU refreshers.
While some are celebrating the 125% company multiplier on their annual bonus, the buzz is that Meta’s RSU refreshers appear smaller than expected, signaling that the company has revised its annual stock refresher formulas.
Meta takes a unique approach to equity compensation. Most companies have compensation philosophies that establish target compensation bands for each employee and use annual equity refreshers as a lever to keep employees within those bands. So, if an employee’s previous equity grants have appreciated, future grants are adjusted downward accordingly.
In contrast, Meta’s formulaic approach does not factor in past equity grants at all. This formulaic approach isn’t changing. Meta still has one of the best approaches to RSU refreshers from an employee perspective.
To understand the change we need to review “Meta Refresher Details”:
RSU Refreshers
Meta has a very formulaic refresher structure. It is based on your country, role, and level. Refreshers are awarded during the annual performance cycles, which typically take place in February. The shares vest quarterly over four years, with the first vesting from the refreshers occurring in the May vesting period.
RSU Refreshers are valued as a dollar value and the number of shares will be typically determined by the average closing price of Meta stock for the first 7 trading days in February.
Software Engineers earn the largest RSU refreshers. The Product Manager (PM) RSU refresher is typically 80% of that of an equivalent Software Engineer. Data Scientists and Product Growth receive approximately 69% of a Software Engineer’s RSU refresher value.
The specific values for PM and Engineering seem to merge at Director and above levels.
2025 Meta RSU Changes
10% Drop Across the Board
>10% drop in UK Country Multiplier (now .8 vs .9)
New E4 Baseline: $58,500 (down from $65,000)
New E5 Baseline: $157,500 (down from $175,000)
New E6 Baseline: $247,000 (down from $274,500)
These changes are additive.
Example of an E5 in London who received “Currently Meeting Expectations” (CME)
2024 Refresher: $157,500 (Math: $175,000 x .9)
2025 Refresher: $126,000 (Math: $157.500 x .8)
This indicates that London based employees will now receive 20% fewer RSU refreshers than their counterparts in New York City and the San Francisco Bay Area.
Total Comp Impact?
I am sure the current change might sting, but this should have minimal impact on the current year’s total compensation for the average Meta employee.
An E6: Drop of 2025 TC of ~ $6,200 and ~$8k in 2026 (at current stock prices)
C-Level Bonus Target Increases
Updated 2/21
In a February 20th SEC report Meta is also announcing new base level bonus targets for named C-Level executives (other than Mark).
New Baseline Bonus % for C-Level: 200% of base, up from 75%
According to the filing this change will move executive total cash target compensation from the 15th percentile to the 50th percentile. I personally struggle to see how this would be the case unless the independent compensation consultants do not include equity compensation within their formulations.
Broader Trends
I was eagerly awaiting data points for Meta’s refreshers. Meta’s formulaic approach to RSU refreshers remain industry leading. Total Compensation across every roll at Meta for those employee’s who managed to stay has drastically increased. Meta’s current stock price of $700, the appreciation in value of past META stock grants has been meteoric.
2/2022: $228.51 (+200%)
2/2023: $184.07 (+280%)
2/2024: $466.53 (+50%)
An even more drastic change would have been if Meta decided it was transitioning their RSU compensation philosophy towards one that was more Total Compensation focused. Doing away with the one size fits all formula that sees drastic differences in Total Compensation among those who joined mere months apart.
I am hoping that if Meta were to make a more drastic changes in the future that they would do more active communication leading up to it.
Setting expectations is important. The worst way to learn about changes that impact your compensation is through a random newsletter.
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