Report: TikTok has the power to revoke workers’ stock for speaking negatively about the company


Report: TikTok has the power to revoke workers’ stock for speaking negatively about the company

According to a report by Fortune, a shareholder agreement at TikTok prevents individuals from making ‘critical, adverse, or disparaging’ comments about the company. If individuals, particularly those who hold restricted stock units (RSU), speak negatively about TikTok, they risk losing their shares. This provision has sparked concerns among current and former employees, with some feeling they are being targeted by the company for speaking out against this clause, as reported by Fortune.

For example, one former employee, Patrick Spaulding Ryan, believes he was excluded from a recent buyback offer by TikTok because he criticized the disparagement clause on LinkedIn. TikTok has not yet responded to requests for comments regarding this issue.

In addition to internal turmoil, TikTok is facing external pressures as well. A bill calling for the app to be sold or shut down is gaining traction among lawmakers who are concerned about the security of user data being compromised by TikTok’s Chinese owners. The bill is set to be voted on by the House soon, and if passed, it will move to the Senate for further consideration.

In response to this bill, TikTok has encouraged users to contact their representatives to oppose the ban. However, this campaign may have backfired as lawmakers have reportedly been overwhelmed by calls from frustrated individuals. While TikTok tries to navigate these challenges, its employees must adhere to strict guidelines outlined in the shareholder agreement to avoid losing their shares.

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