Tiktok parent firm ByteDance boosts stock option buyback
In a quest to keep staff happy, TikTok’s parent firm ByteDance is reportedly initiating a second stock option buyback for staff at a higher price than the previous one.
The Chinese company told staff via email that those eligible can apply to cash out their Restricted Stock Units (RSUs), ByteDance’s stock option programme.
It offered $155 per unit, up from the $142 price set in the buyback earlier this year, two of the employees told Reuters.
ByteDance, which is one of the most valuable private tech firms in the world and has around 110,000 employees, said the higher price was aimed at motivating staff by helping them monetise their holdings.
While the company were not immediately available to comment on these reports, it comes as the company pushes forward with a number of incentive plans for its staff.
Just last month, TikTok’s parent firm was reported that the company spent up to $3bn to repurchase shares, which was aimed at helping shareholders improve their liquidity.
Chinese firms have faced slower economic growth amid Covid-19 measures, as well as Beijing’s crackdown on tech.
Since the end of 2020, the biggest domestic tech firms have faced much stricter regulatory scrutiny surrounding antitrust and data protection.