ByteDance hikes pay, bonuses to retain talent amid AI race
What's the story
In a bid to retain and attract global talent, ByteDance has announced an increase in salaries and enhanced incentives for its employees. The move comes as the company makes progress in determining the future of its US business. In an internal letter sent to all staff on Friday, the Beijing-based firm said it would raise both upper and lower limits of compensation packages across all levels, according to South China Morning Post.
Financial changes
Bonus pool and compensation adjustments
For the full-year 2025 performance cycle, starting January 15, 2026, ByteDance has announced a 35% increase in its total bonus pool from last year. The company also plans to increase its spending on compensation adjustments by 1.5 times. According to the internal letter, the company is "raising the ceiling for compensation and incentives to ensure that our compensation competitiveness and incentives are industry-leading on a global scale."
Structural adjustments
Changes in compensation structure and job grading system
Along with the pay hike, ByteDance will also increase the cash portion of compensation while decreasing the share paid in stock-based awards such as options or restricted stock units (RSUs). Equity incentives will now vest over three years instead of four, shortening the payout period for total equity grants. The company is also simplifying its job-grading system into 10 levels, from L1 to L10, redefining capability requirements at each level to "higher standards."
Business developments
ByteDance's progress in US business and recruitment
ByteDance, the top recruiter in China's tech sector this year, has also made progress in determining the future of its US business. TikTok CEO Chew Shou Zi recently informed employees that the company had signed agreements with investors including Oracle Corporation, Silver Lake and MGX to form a new US joint venture. The joint venture is called TikTok USDS Joint Venture LLC.