Exclusive | ByteDance offers employees US$160 in buy-back plan but angers some ex-staff who would get 20% less, sources say
- The company, which usually conducts share buy-backs twice a year, offered a price of US$160 per share, up from US$155 in the April buy-back round
- The lower offer to those who left the company voluntarily has displeased dozens of former employees in the US, as the company’s plans for an IPO are still stalled
ByteDance, China’s most valuable unicorn and the owner of TikTok, has started a new round of share buy-backs, offering US$160 per share to current employees and those who have been laid off, and US$128 for anyone who quit their job, according to sources briefed on the plan.
The company, which was founded by entrepreneur Zhang Yiming in 2012 and quickly emerged as one of the country’s most valuable companies, usually conducts share buy-backs twice a year. The latest offer price of US$160 marked a slight increase from US$155 in the April buy-back round.
The share buy-back plan was tabled to its China and non-US overseas employees this week.
A ByteDance representative confirmed details of the latest plan, adding that through its buy-back programmes the company aims to provide liquidity for its restricted stock units (RSUs) and options to motivate employees.
In October, ByteDance extended the share buy-back programme to US employees, offering the same price to current and former employees.
However, the 20 per cent lower offer to those who left the company voluntarily has displeased dozens of former employees in the US, as the company’s plans for an initial public offering (IPO) are still stalled.
