Alibaba revamps staff incentives to better reward high-performing staff and bolster morale, people say
- The changes are said to be aimed at improving the ‘certainty and liquidity’ of employee income
- The main change is shortening the wait time before employees can vest their equity and cash incentives
Chinese e-commerce powerhouse Alibaba Group Holding is revamping staff incentives to combine more exercisable stock options with cash in an effort to boost employee morale amid intense competition in a challenging market environment.
The new incentive scheme will come into effect from April 1, 2024, the start of the new financial year for the Hangzhou-based firm. The changes are aimed at improving the “certainty and liquidity” of employee income, according to people familiar with the matter, who declined to be identified.
The main change is shortening the wait time before employees can vest their equity and cash incentives. Stock options given to employees from this April will be able to be exercised quarterly instead of annually, making employee compensation more accessible.
The new plan also offers “long-term cash”, outside the annual bonus, that can be vested periodically over time.
Alibaba, which owns the Post, did not immediately respond to a request for comment.
The long-term cash incentives are not linked to the company’s stock price, according to the people familiar. Alibaba’s shares are down about 13 per cent in the past year, and well down on all-time highs hit in 2020.