Alibaba Group Holding will significantly upgrade its employee incentive program, a change that comes as workers had been threatening to protest over the Chinese tech giant’s stock option policies, reports Nikkei Asia. According to an internal letter addressed to employees on Monday and seen by Nikkei Asia, Alibaba announced that starting April 1, it will incorporate “long-term cash” into its existing equity-only incentive program, as well as significantly increase the frequency of redemption periods from an annual basis to a quarterly basis.
The adjustment is meant to “increase the certainty and liquidity of employee income,” the letter said.
Multiple employees told Nikkei Asia that the adjustment is good news, particularly for new hires, as the new cash incentive means workers’ income will not be as affected by share price fluctuations. Alibaba’s shares have been on a downward trend for more than three years.