TikTok-parent ByteDance to offer 50% bonus payouts for top performers in 2026

TikTok parent ByteDance is all set to boost the compensation packages for its highest-performing employees in 2026. As reported by Business Insider, an internal memo of the company revealed that the ByteDance will spend around 50% more globally on incentives such as raises and bonuses compared to last year, with payouts reserved for staff who exceed performance review benchmarks. The memo obtained by Business Insider outlines that the compensation adjustments will apply across most of the departments, but only employees who achieve strong scores in annual reviews will benefit from this. The report suggest that workers with ‘M’ rating (consistently meets expectations) or higher will see 35% more in bonuses, while those with the ‘F’ scoring (exceed exceptions) stand to gain bigger payouts. It is important to note that a larger portion of bonuses will be paid in cash rather than stock options, a move expected to appeal to employees amid uncertainty over equity liquidity following ByteDance’s plan to spin off part of TikTok’s U.S. business into a joint venture next year. For those still receiving equity, the vesting period will be shortened from four years to three.Performance reviews have long been a focal point at TikTok. Managers are urged not to grade staff at the midpoint to avoid conflict, and last year the company adjusted its process to issue more low scores, sharpening the distinction between high and weak performers.Along with the incentive adjustments, the company is also planning to restructure jobs into 10 different levels with higher performance standards. The changes coincide with TikTok’s U.S. spin-off, expected to close in January, involving investors such as Oracle, Silver Lake, and MGX. Key areas like e-commerce, advertising, and marketing will remain under ByteDance’s management.Offering bigger raises and cash bonuses may help TikTok retain talent during this period of flux. As one staffer told Business Insider, the cash-heavy bonuses could reassure employees wary of equity’s uncertain future.