This just in: DO NOT join TikTok! The RSUs are a SCAM!
Yesterday we all got the notification that former employee shares are being bought back at only ~$125/share despite them taxing us at nearly ~$160 share. Current employees get a buyback opportunity at $160/share (the fair market value.) TikTok is essentially taking a giant shit over all former employees by forcing them to sell at 20% under the fair market value. This forces former employees to take a huge capital loss (tax burden > liquidity.) TikTok is also using likely illegal provisions to disallow selling on the secondary market. Essentially, you are forced to sell to TikTok at the price only they allow. It is also likely illegal to file taxes at $160 and then arbitrarily split the shares into two classes right before buyback - former and current. This allows TikTok to pretend to the news they are worth $160/share while getting a significant discount on the actual price. To anyone considering joining this worthless company: don't. The comp they tell you is a lie. To the asshole TikTok execs: I feel like pissing off literally all of your former employees is the wrong fucking move, but what do I know?
That’s extremely scummy and quite frankly the only way they will reconsider their actions is through a wave of lawsuits. That’s the only thing these dirtbag companies will respond to.
Considering the current action and trajectory by the executives, it seems some lawsuits should be on the way. And those lawsuits would at-least create awareness among future employees and US public in general.
But the fact that they're doing this anyways would mean that they have some degree of confidence that they'll win those cases or still be better off regardless?
It's like they are trying to get banned in the US. Piss off all the employees that know all the skeletons in your closet?
Did you expect more from a communist company? Grow up, kid.
Why hasn't us banned them similar to how china has banned google/meta?
One of these countries believes in freedom of speech
@coinbase you’re an idiot. TikTok is literally a psyop
I am shocked that such a reputable company is doing this
Why stop at $125? Why not $1.25, or just void their shares? I mean what's stopping them from setting any arbitrary price they like?
I guess I count it as a blessing in disguise that I failed their stupid on site
What? Chinese companies never cheat.
Chinese companies are the most ethical.
Looks shady. Can you write this to your representative/senators/FTC?
This is why they are private.
Being private does not allow you to intentionally manipulate the FMV of your shares during a buyback right after a tax settlement. It also does not allow splitting the shares into two classes based off of employment classification.
There's usually no right to a buyback.