ByteDance, the Chinese owner of short video app TikTok, will allow shares of US employees to vest without waiting for the company to list in the stock market, thereby allowing them to cash out, according to people familiar with the matter. The move is aimed at appeasing restless employees who have been waiting for an initial public offering to profit from the shares they have been awarded as part of their compensation. It is also an indication that ByteDance, whose worth in excess of $200 billion makes it the world's most valuable startup, is in no rush to go public amid Beijing's heightened scrutiny of China's technology giants.
ByteDance will now allow restricted shares of US employees to vest as long as sufficient time has passed, the sources said. The company previously set a «liquidity event», such as an IPO or company sale, as a condition for the vesting to occur, the sources added. Once vested, the shares can be exchanged by the employees for cash in one of ByteDance's stock buyback programs.
The employees were informed of the changes on Tuesday, the sources said. A ByteDance spokesperson confirmed that the company has changed its share vesting rules but declined to comment on the details. «Our goal is to provide competitive rewards for our employees.
We announced an internal solution that will make our US-based employees eligible to participate in future share buyback programs,» the spokesperson said. The move applies to ByteDance's US employees, which include about 7,000 TikTok employees. The changing of the rules has a downside for some employees, the sources said.
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