Zoom to Reduce Stock-Based Compensation as Tech Targets Dilution

Zoom Video Communications Inc. is reducing the practice of paying workers with company stock, joining peers such as Salesforce Inc. and Workday Inc. in limiting their reliance on a common compensation technique in the tech industry.

Equity in Zoom has been issued to workers at a rate that is “not sustainable,” Chief Executive Officer Eric Yuan wrote this week in a note to employees. “We grant a significant amount of shares each year that has led to very high dilution. Put simply, we are granting too much equity and must proactively reduce it.”

The technology industry has long paid workers ...