Zoom Trims Stock Perks As Tech Giants Overhaul Compensation
Zoom employees are dialing into a new reality as management mutes stock-based compensation. The video conferencing company is joining tech peers like Salesforce, Workday, and ServiceNow in cutting back on employee equity grants — a long-time industry staple that helped tech workers build wealth. This shift is reshaping compensation across the sector, with a growing focus on shareholder concerns.
- After hit record lows last month, CEO Eric Yuan declared that shelling out more equity to employees is “not sustainable” anymore, announcing a phase-out over the next two fiscal years.
- “We grant a significant amount of shares each year that has led to very high dilution,” Yuan explained, noting how the practice can lower stock value by diluting shares.
Wages in the waiting room: As Big Tech swaps stock for cash, it’s rewriting the industry’s compensation playbook — transforming talent retention despite a job-hopping culture. While some employees may see beefier bonuses, others might feel less invested in their company’s success. In this new landscape, tech workers could see their golden handcuffs replaced by… well, just regular paychecks.
