Alibaba freezes executive pay rises amid China's curbs on big tech -sources
As per the sources, the top-tier executives at Alibaba have been kept away from the salary rise in 2021, and the junior staff is being given bigger salary increases. The top executives will only be entitled to the raise, if they perform extraordinarily.
Usually the management level executives use to get on an average 5% to 10% pay rise annually apart from stock incentives. But the current pay move is a departure from the usual, for a company who has been the main point of focus for the crackdown by the Chinese authorities, who claim worries about the company’s market dominance and ability to sway public opinion.
Alibaba has stated that talent is the group’s most important asset, and that the company has a robust system that knows priorities in cultivating the next generation of talents.
Alibaba had a staff of 252,000 as of 2020. The business empire is under scrutiny from the authorities, after billionaire founder Jack Ma's stinging public criticism of the country's regulatory system in October.
It was fined a record 18 billion yuan ($2.78 billion) earlier in April after an anti-monopoly probe found the e-commerce giant had abused its dominant market position for several years.
China's State Administration for Market Regulation (SAMR) has taken aim recently at China's large tech giants in particular, mirroring increased scrutiny of the sector in the United States and Europe.