ByteDance's salary quietly increased, with a real salary increase of 20%! Netizen: The new trend in the industry!

On the evening of the 18th, ByteDance announced a major event via an email to all employees.

As soon as the content of the letter came out: the general contract will remain unchanged, the monthly salary will increase by 20%, and the realization of options will be accelerated! Netizens exclaimed: Byte wants to force salary increases!

Email notification: In order to improve management efficiency, it has been decided to fine-tune the salary plan for which the number of year-end bonus months is greater than 3. The adjustments are as follows: The target number of year-end bonus months is adjusted to 3 months. Thank you for your understanding and support.

Statement: This adjustment will not affect the 2023 full-year performance evaluation, and the salary structure is expected to be adjusted by the end of March after the end of the 2023 full-year performance evaluation project, with an effective date of January 2024 January 1st. The monthly salary difference from January to March will be distributed together with the salary adjustment difference payment date.

1. Major performance adjustment of Byte

##After the update, the performance and incentive policies have become more attractive. The changes mainly include accelerating the vesting speed of options, increasing incentives and giving better returns to employees with outstanding performance. The specific measures include the following four items.

First, employee options can vest faster. From 2024 onwards, the pace of option vesting in the total salary package will accelerate. Except for the first year of employment, the adjustment is from "annual vesting" to "quarterly vesting". At the same time, the four-year vesting ratio changed from "15%-25%-25%-35%" to "20%-25%-25%-30%", and the vesting ratio increased in the first year. Options for salary increase and additional issuance after joining the company will vest directly on a quarterly basis.

Second, the year-end incentive method has been changed, and employees with outstanding performance will receive more options. High-performing employees can receive larger incentives in the form of options. Starting from January 2025, the annual incentive meeting for ByteDance employees will consist of two parts: "Full-year Award" and "Performance Options". The maximum annual award is 3 months' monthly salary, and employees with outstanding performance will receive performance options.

The third is that performance options will double amplify the base number and the number of shares. From a base point of view, performance options are calculated based on the total monthly salary package instead of monthly salary, which includes not only the monthly salary but also the options in the total salary package. Judging from the number of shares, performance options will issue an additional proportion (about 10%) based on the current price.

Fourth, after the option vests, you can participate in the repurchase in full. Performance options obtained by employees will vest at a uniform monthly rate, with a maximum length of 2 years. After the option vests, you can participate in the repurchase in full. According to public reports, ByteDance repurchases options from employees twice a year. The last time was in November 2023, with a repurchase price of US$160 per share.

In addition, in conjunction with this adjustment, the ByteDance product line salary has also been adjusted, from the previous 18 salary to 15 salary, and the total package remains unchanged. Based on this calculation, the monthly salary The basic salary (base) is increased by about 20% in disguise.

2. What’s going on with the accelerated repurchase of Byte options?

It is reported that since 2017, ByteDance has provided option repurchase opportunities to employees every year in order to Meet employees’ cash needs. Generally, Byte provides two rounds of option buyback opportunities every year, usually in April or October each year. April is also ByteDance's annual performance appraisal season. Employees can choose to exchange their year-end bonuses for options based on their own circumstances.

From a contract to cash, options have to go through four steps: grant, vesting, exercise and liquidation. Employees will be granted options when they join the company, and Byte employees will also Options can be obtained through year-end bonus exchange;

Byte options take four years to fully vest. Previously, 15%, 25%, 25%, and 35% vested respectively each year. The vested portion It can be realized by paying a small amount of the exercise price. The method of realization can be the company's repurchase, or it can be sold in the open market after the company is listed.

Look at it this way, the adjustment of the option vesting plan this time is from "annual vesting" to "quarterly vesting", and the proportion becomes "20%-25%-25%- 30%", which is a good opportunity for Byte employees to accelerate the realization of options.

According to relevant sources, ByteDance’s last two buybacks occurred in April 2023 and October 2022. The repurchase price of the former is US$155 per share before tax, which is the same as the latter. The repurchase price has continued to increase before.

3. Discussion brought about by the proportion of year-end bonus

The proportion of year-end bonus is too high and is strongly related to performance. The recruitment website writes 18 Salary, it is very likely that I will leave without even getting a penny of year-end bonus. "As long as it's not written in the contract, there's no guarantee," one netizen said.

Some attentive netizens believe that changing the 18 salary to 15 salary may also bring a risk to Byte: it will not be delayed by the year-end bonus payment in March. Maybe he switched jobs.

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As a major Internet company, ByteDance will give a The industry has brought a lot of movement. From the cancellation of big and small weeks in 2021 to the current salary of 18 to 15, it can be seen that the entire industry and talent market are undergoing positive changes.

Reference link:

https://zhuanlan.zhihu.com/p/665915588

https://www.techweb.com. cn/it/2024-01-19/2939903.shtml

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