That means employees will receive their standard year-end bonus in April 2025 and another bonus equivalent to that amount in August 2025. This plan will cover all full-time employees who are active at that time and eligible for the regular year-end bonus, according to the internal letter sent to employees on Tuesday night.
Cainiao is embarking on a “journey of entrepreneurship”, which requires the “continued collective effort and commitment of our entire team”, Wan said in the letter.
“We will focus on developing key businesses, expanding our global logistics network, building global competitiveness and becoming a leading logistics network serving customers worldwide,” he said.
The new financial incentive to Cainiao employees shows parent Alibaba’s focus on keeping morale high at an integral business under the e-commerce giant, following its decision to withdraw the unit’s IPO owing to current market conditions and certain strategic considerations.
“With the change in IPO plans, we believe that it is important to stabilise the morale of Cainiao employees to ensure smooth operations,” Joe Tsai, the chairman at both Alibaba and Cainiao, said in a conference call on Tuesday.
Alibaba will deepen the integration between its logistics and e-commerce units, as part of efforts to regain market share in mainland China and expand business in international markets, according to Tsai.
In a statement on Tuesday, Alibaba co-founder Tsai said it was an appropriate time for the company “to double down on its investment in Cainiao”. Alibaba, which currently owns 64 per cent of Cainiao, has offered up to US$3.75 billion to buy the remaining stake of minority shareholders, including employees, in the logistics firm.
“We believe that this [offer], coupled with additional retention incentives, would address the issue of workforce stability,” Tsai said. The offer gives Cainiao a valuation of US$10.3 billion.
In the December quarter, Cainiao’s revenue rose 24 per cent year on year to US$4 billion on the back of its cross-border logistics services business.
Meanwhile, Alibaba is also revamping employee incentives at its other business units to retain and attract workers amid intense competition in its industry.
The group’s new incentive scheme, which will take effect at the start of its 2025 financial year in April, allows employees to exercise their stock options quarterly instead of annually.
