TikTok parent ByteDance offers top performers more stock options

ByteDance has adjusted its staff incentive policy for the second time this year, as Trump’s re-election boosts its valuation

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A ByteDance office in Beijing. Photo: EPA-EFE

Published: 6:30pm, 20 Nov 2024

ByteDance has promised to grant top-performing employees additional stock options from next year, as hopes rise that Donald Trump’s re-election as US president could ease the political pressure faced by TikTok in one of its most important markets.

The Beijing-based social media giant, which hires roughly 110,000 workers globally, decided to give more stock options to those who attain a performance rating of “M+” or above in the next review cycle, which begins in January, according to an internal letter sent on Tuesday that was seen by the South China Morning Post and confirmed by ByteDance staff.

An M+ rating, which stands for “above expectations”, is the fourth-highest score on a scale of eight. It is awarded only to a small portion of the staff and has become harder to attain recently, according to two employees, who declined to be named.

This marks the second time this year that ByteDance has adjusted its staff incentive policy to encourage better performance. In March, it announced that employees who were rated “M” (meet expectations) or higher would be awarded extra payment of between 5 per cent to 15 per cent of their original bonuses. Bonuses would consist of a cash portion no bigger than three months’ salary, and restricted stock units (RSUs).

TikTok is owned by Beijing-based ByteDance. Photo: dpa

On Tuesday, the company told employees it would increase “the upper limit” of bonuses given to high performers, without providing details.