Talk Trash, Lose Stocks: Former And Current Employees To Get Penalized If They Badmouth TikTok

TikTok has warned both current and former employees against speaking negatively about the company, indicating potential consequences.

According to Fortune, TikTok provides restricted stock units (RSUs) to its employees as part of their compensation package. However, these RSUs are subject to being revoked under a provision outlined in a TikTok shareholder agreement.

What Will Happen If Tik Tok Employees Bad Mouth The Company?

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According to the agreement, holders of restricted stock units (RSUs) are prohibited from making any "critical, adverse, or disparaging" remarks about the company, its affiliates, or employees. The consequence for violating this provision is the immediate forfeiture of all the participant's restricted share units.

As per the report, a former employee expressed concerns to Fortune, stating that he feels he is being targeted by the company. Quoting Patrick Spaulding Ryan, the report highlighted that TikTok excluded him from its recent buyback offer for both current and former employees on March 4.

This exclusion occurred because he had publicly criticized the disparagement clause on LinkedIn.

Trump's TikTok Concerns Spark Legislative Response and Uncertainty

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Against the backdrop of former US President Donald Trump's assertion that TikTok posed a national security risk, he also acknowledged the potential adverse effects of banning the app, particularly on young users. Trump suggested that such a ban could inadvertently bolster competitors like Facebook, a platform he has previously criticized. Meanwhile, US lawmakers are gearing up to vote on legislation that would compel TikTok's Chinese parent company, ByteDance, to divest the app within six months.

With close to 170 million users in the United States, TikTok stands as a significant platform, further emphasizing the importance and potential impact of any divestiture proceedings.

Meanwhile, India banned TikTok and 100-plus other Chinese apps in June 2020 citing national security concerns.

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