Apple offers huge bonuses to stop talents from joining Meta
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The Apple bonuses have come as a surprise, and they ranged from about $50,000 to $180,000.
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Apple is offering top talents hefty bonuses to stop them from joining Meta.
In an attempt to retain talent, Apple has given unusually large stock bonuses to some engineers, hoping to deter defections to tech rivals such as Facebook owner Meta Platforms.
According to people familiar with the matter, the company informed some engineers in silicon design, hardware, and select software and operations groups of the out-of-cycle bonuses, which are being issued as restricted stock units, last week.
The shares will vest over four years, providing an incentive to remain with the iPhone maker.
The bonuses, which were unexpected by those who received them, ranged from $50,000 to as much as $180,000 in some cases.
According to the people who spoke on condition of anonymity because the program isn't public, many of the engineers received shares worth $80,000, $100,000, or $120,000. Managers presented the perk as a reward for high performers.
The Cupertino, California-based company's representative, declined to comment.
Apple's talent war
Apple is waging a talent war with companies in Silicon Valley and beyond, with Meta emerging as a particular threat. In the last few months, Meta has hired about 100 engineers from Apple, and the latter has also lured away key Meta employees.
With major hardware releases planned over the next two years, the two companies are likely to become fierce rivals in augmented- and virtual-reality headsets and smartwatches.
The payments are not included in standard Apple compensation packages, which include a base salary, stock units, and a cash bonus.
It is worth noting that Apple occasionally gives cash bonuses to employees, but the size and timing of the latest stock grants were unusual, according to the sources. They were distributed to approximately 10% to 20% of engineers in relevant divisions.
Some engineers have been irritated by the bonus program because they did not receive the shares and believe the selection process is arbitrary. Some of the bonuses were worth the same as the annual stock grant given to some engineering managers. And their value is expected to rise if Apple's stock price rises further.
The stock is up 36% this year, bringing the company's market capitalization to nearly $3 trillion.
Recruitment plans
Meanwhile, Meta has increased its efforts to recruit engineers from Apple's augmented reality, artificial intelligence, software, and hardware engineering divisions.
As it looks to refocus on hardware and the so-called metaverse, the social media company that operates Facebook, Instagram, and WhatsApp has dangled significant salary increases.
A talent drain has also hit other areas, including Apple’s self-driving car team. As it works on several next-generation devices, including the car, VR and AR headsets, and future iPhone versions, the company must maintain its engineering prowess.
Though the company has delayed its deadline for staff to come back, it’s taking a harder line on in-person work than some of its technology peers.
Apple has stated that it expects corporate employees to work at least three days per week from the office, while hardware engineers will be required to work four or five days per week.
That said, Meta and other companies plan to relax their policies.
