In an attempt to inspire staff members and restore confidence following a difficult year, Chinese software behemoth ByteDance is willing to buy back employee stock options at a higher price than it did previously in the year.
ByteDance, the company behind the well-known short video app TikTok, informed its foreign workers on Wednesday that it would buy their restricted stock units (RSU) or options for $160 apiece, up from the $155 it was offering in April, according to a person with knowledge of the situation who was not allowed to speak in public, as reported by CNBC.
This is an optional exercise. The similar offer was made to US workers earlier this year.
Employees can purchase restricted stock units (RSUs) or options, which can be converted into common shares in the event that the business is bought or goes public.
Through repurchase programmes, ByteDance hopes to incentivize staff members by offering liquidity for its restricted stock units (RSUs) and options, a company representative told CNBC.
For the past few years, ByteDance has had to contend with more domestic regulation, a decline in its market value, and increased scrutiny of its main app, TikTok, in the United States.
Shou Zi Chew, the CEO of TikTok, faced questions from US senators in March because they were worried that Chinese authorities would obtain user data from Americans.
Source (CNBC)
