Meta increases its losses in Spain by distributing more than 63 million in shares to its employees in 2024.

In two years, the company has distributed securities worth more than €109 million to its employees in Spain.

Facebook Spain, Meta's subsidiary in Spain, recorded net losses of €51.52 million in 2024, a 41% increase compared to €36.37 million in 2023, according to accounts filed with the Commercial Registry.

The main reason for these losses is the sharp increase in personnel expenses, which reached €111 million last year, 10% more than the previous year.

The large expenditure on its employees is primarily due to the restricted stock (RSU) compensation plan that Meta grants to all its employees in Spain, including a small group of senior executives based in the country. In 2024 alone, the subsidiary distributed €63.3 million in Meta shares, compared to €46 million in 2023. In two years, the company has distributed more than €109 million to its employees in the form of shares under the incentive plan, established in 2012.

This incentive plan, common among American technology companies, is included in Spanish workers' salaries even though it comes from the American parent company.

Furthermore, although the workforce has been reduced by about 33 employees over the past two years, the cost of the plan has increased due to the appreciation of the stock , which nearly doubled its price on Wall Street last year compared to the previous year. The company's value on Wall Street is expected to grow by more than 60% through 2024.

Specifically, the shares issued to employees in 2024 were settled at an average unit price of €471.57, almost double the €242.19 price of 2023.

In fact, the average salary of Facebook employees in Spain in 2024 amounted to €585,116, 83% more than the €319,620 in 2023.

Facebook Spain generated €73 million in revenue in the country last year , almost 15% less than the €85.61 million recorded the previous year.

Despite this decline, the company highlights the increase in gross advertising revenue in Spain, which grew by 8% to €585 million. Furthermore, they point out that Meta's advertising services generated economic activity in Spain in 2024 amounting to €18.88 billion and helped maintain around 128,000 jobs in the country.

With Meta's share price up 22% so far this year , payroll expenses are expected to rise again in the 2025 financial year, further putting pressure on the results of the tech giant's Spanish subsidiary.