Asianfin – Zoom Video Communications has announced plans to reduce its stock-based employee compensation, aligning with similar actions taken by peers such as Salesforce and Workday. Zoom’s CEO revealed the decision in a report to employees, stating that the company’s current pace of issuing equity awards is unsustainable. He noted that the practice of granting significant amounts of stock every year has resulted in high levels of dilution, making it necessary to scale back. Starting from February, the company will gradually phase out its annual performance stock plans over the next two fiscal years, significantly lowering the amount of equity granted to new hires. In addition, some employees will receive increased cash bonuses to offset the reduction in stock compensation. The CEO emphasized that this challenge is not unique to Zoom, as many companies in the industry are facing similar issues. Earlier stock-based compensation plans were designed to address the volatility in stock prices during the pandemic and the recent decrease in their value. This move comes as part of Zoom's broader efforts to maintain financial sustainability while navigating the shifting market dynamics that have affected many tech firms post-pandemic.