© Reuters. FILE PHOTO: Alibaba Group’s logo is seen in its Beijing office
BEIJING (Reuters) – Chinese e-commerce giant Alibaba (NYSE 🙂 Group Holding has frozen salary increases for top executives in 2021 and is instead granting higher salary increases to junior staff, the sources said, in an effort. for preserving its workforce amid regulatory crackdown. Hundreds of senior executives at Alibaba are not entitled to pay raises this year, unless they have performed exceptionally, four sources familiar with the matter said. However, the Hangzhou-based company has offered sizable salary increases to junior staff, they said. The wage moves mark a departure from the usual for Alibaba, which has been the focal point of China’s months-long crackdown on the mainland’s large and powerful tech companies over concerns about their dominance of the market and their ability to influence the market. public opinion. Its top-level executives over the years received an average salary increase of 5-10% per year and also received stock incentives, a source said. In a statement to Reuters, Alibaba did not comment directly on the executive pay freeze, but said: “Talent is the Alibaba Group’s most important asset. We have a strong and competitive compensation system that reflects our priorities in cultivating our business. next generation of talent. ” “The sources declined to be identified because they were not allowed to speak to the media. Alibaba, which runs businesses from e-commerce to cloud computing, logistics and entertainment, employed more than 252,000 employees in 2020. By he usually decides on salary increases for most employees in April. Alibaba’s business empire has come under intense scrutiny in China since billionaire founder Jack Ma’s harsh public criticism of the country’s regulatory system in October. He was fined. with a record 18 billion yuan ($ 278 billion) in early April after an antitrust investigation found that the e-commerce giant had abused its dominant position in the market for several years. The State Administration of Regulation China Market Market (SAMR) has recently targeted China’s big tech giants in particular, reflecting an increased e scrutiny of the sector in the United States and Europe.