TikTok’s parent company, ByteDance, is attempting to address employee concerns by expanding its share buyback program to include employees outside the US. This follows a similar program launched in March for US staff. However, the situation remains complex due to ongoing political tensions and tax implications.

Key Points:

1. ByteDance is offering to buy back employee shares for around $171 each.
2. This follows concerns raised by employees, particularly in the US, about their inability to sell shares and cover tax liabilities.
3. The company’s valuation has risen significantly in recent years, creating a potential windfall for employees holding shares.
4. However, restrictions on share sales and the ongoing threat of a US ban on TikTok are dampening employee hopes for full liquidity.

Employee Frustrations:

• Many employees, both in the US and abroad, have been unable to sell enough shares to cover the taxes owed on vested stock units (RSUs).
• ByteDance’s previous buyback programs have been limited, and the formula for purchasing shares was criticized as unclear.
• This has caused financial strain for some employees, impacting their lives significantly.

Looking Ahead:

• The new buyback program offers some relief for non-US employees, allowing them to sell half their vested stock initially.
• However, the situation remains uncertain due to:
• The potential US ban on TikTok.
• ByteDance’s unlikely public listing in the US or large-scale external share purchases.

Comparison to Other Tech Startups:

• Some tech companies, like Stripe and Instacart, have implemented solutions to help employees manage tax liabilities on RSUs.
• These solutions include facilitating share sales to cover tax costs or conducting IPOs to create liquidity.

Employee Impact:

• The lack of liquidity has had a significant negative impact on many ByteDance employees’ lives.
• The ambiguity surrounding the buyback program adds to the stress for employees seeking guidance from their managers.
• Overall, ByteDance’s move offers some relief for non-US employees but doesn’t fully address their concerns. The company’s future actions regarding share sales and navigating the US political landscape will be crucial in determining employee financial security.

Here are some additional insights and resources:

• rise of employee stock ownership in tech startups has created both opportunities and challenges. 
• issue of taxation on RSUs is complex and can vary depending on location. 
• ongoing US-China trade tensions and potential ban on TikTok add a layer of political uncertainty to the situation.
• By staying informed about these factors, employees can make more informed decisions about their financial situation with ByteDance.