Alibaba Overhauls Incentives to Entice Staff as Stock Languishes
- The changes to staff compensation take effect from April 1
- Alibaba is trying to revive growth after years of malaise
Alibaba offices in Beijing.
Source: Bloomberg
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Alibaba Group Holding Ltd. will roll out a new employee incentive plan starting April that combines equity with cash, a significant adjustment designed to help the e-commerce giant attract and retain talent despite fierce competition.
The Hangzhou-based company told employees in a company-wide memo the changes are aimed at “improving the certainty and liquidity” of its compensation, according to people who’ve seen the message. Starting April 1, staff get “long-term cash” in addition to stock options. Those instruments will also vest once a quarter instead of only once a year, according to the memo. Alibaba representatives didn’t respond to an emailed request for comment.