Alibaba Group Holdings has announced it is freezing pay rises for its senior executives and is instead giving salary boosts to its junior staff amid concerns over the government’s proposed regulatory clampdown.
Alibaba’s top executives are rumoured to only be entitled to a salary hike if they perform extraordinarily, according to Reuters.
The company’s senior level executives have received on average five to 10 per cent pay rises annually alongside stock incentives.
“Talent is Alibaba Group’s most important asset”, Alibaba told Reuters in a statement.
“We have a robust and competitive compensation system that reflects our priorities in cultivating our next generation of talents.”
Alibaba employed more than 252,000 staff in 2020 and usually decides pay rises for most employees in April.
The ecommerce giant has been under the government’s microscope recently after billionaire founder Jack Ma told the public at an event attended by Chinese regulators in October that the country’s financial and regulatory system “stifles innovation and must be reformed to refuel growth”.
Alibaba was also ordered to dispose of all its media assets by the Chinese government last month amid fears it holds too much sway over public opinion as its onslaught against big-tech gathers pace.
The platform was slapped with a £2.8 billion fine by market regulators in early April as part of a widespread anti-trust investigation into the company was launched.
The retail giant said it was “full of gratitude and respect” for the government’s regulation, and it will need to continue to invest in good corporate deeds to remain in the government’s good books.
Despite Alibaba’s record $2.8 billion fine, Jack Ma’s net worth skyrocketed $2.3 billion as the company’s stock continued to rally.