As China’s biggest e-commerce firm Alibaba Group gears up for its upcoming New York IPO, it’s announced some changes. One in particular is expected to further strengthen founder Jack Ma’s control over his billion-dollar enterprise.
Alibaba bonus scheme strengthens Jack Ma's controlAs China's biggest e-commerce firm Alibaba Group gears up for its upcoming New York IPO, it's announced some changes. One in particular is expected to further strengthen founder Jack Ma's control over his billion dollar enterprise.
As founder and executive chairman of Alibaba, Jack Ma has a lot of power. And that influence is only set to get stronger as he prepares for what may be the biggest IPO in US history.
In Alibaba’s latest filing to the U-S Securities and Exchange Commission, Ma outlines how he created a bonus program that allows high ranking executives and Alibaba employees to acquire share rights at an affiliated company he controls.
That company is Zhejiang Alibaba e-Commerce or Small and Micro Financial Services Company. It’s a firm that holds payment business Alipay, which was spun-off from Alibaba three years ago.
Alibaba CEO Jonathan Lu and chief people officer Lucy Peng are among 20 executives that have acquired 42 percent of Small and Micro Financial Services Company’s shareholding rights and benefit from the program.
According to documents, 20 executives along with Ma have exclusive rights to choose the majority of Alibaba’s board of directors. Industry observers say through initiating the bonus program, Ma’s influence over how the board is selected could deepen.
For more on Alibaba, CCTV America spoke to Michael Moe, CEO and the CIO at GSV Asset Management in San Diego.
Alibaba announced some changes to its IPOFor more on Alibaba, CCTV America spoke to Michael Moe, CEO and the CIO at GSV Asset Management in San Diego.
Alibaba CEO Jack Ma has already started plotting his next business move. Ma is now working to add entertainment powerhouse to his resume. Even with his past success, his expansion strategy has its fair share of critics. Cathy Yang reports from Hong Kong.