On the eve of the Big Lunar New Year holiday, which begins Wednesday, Chinese companies usually give red envelopes to their employees, called “hongbao”, which is filled with money. But, not from Jack Ma this year; the founder and Executive Chairman of Alibaba Group Holding Ltd (NYSE:BABA), a family of highly successful internet-based businesses. A WSJ article discussed the reasons behind it and what Jack Ma has said about not giving red packets to his employees this year.
“The reason for not distributing red envelopes is that in the past year, Alibaba Group has not had exceptional results and not had any special surprises,” Ma reportedly said on his blog.
According to Jack Ma, being listed should not be a surprise, as it was the result of Alibaba Group Holding Ltd (NYSE:BABA)’s employees’ work for over 15 years. According to him, other than going public, they haven’t been so satisfied with their results in the year 2014, that they should distribute red envelopes among their employees, despite the company’s record-breaking IPO, further solidifying Ma as one of the richest men in the world.
“We must objectively and calmly see our own results, rationally regard external views and not let ourselves be lost in illusory fame,” Ma said.
Last month, Alibaba Group Holding Ltd (NYSE:BABA) announced disappointing growth in its revenue for the December quarter, which sent shares tumbling. It also had to battle with a strong Chinese regulator on the point that Alibaba is not capable of handling the fake goods issue, including some other issues like bribery and illegal activities taking place on its platform.
Jack Ma said that the outside world is expecting too much from them and they are far behind those expectations. He also said that their company has the same problems that many big companies have. This may be bad news for employees of Alibaba Group Holding Ltd (NYSE:BABA) but what he said is quite practical and logical as a Chairman. According to him, reward will be given after performing well. Investors must be expecting good results from Alibaba Group Holding Ltd. but it did not perform well in the previous quarter (or at least, not as well as they had hoped).
After the bad news of not receiving red packets this year for Alibaba Group Holding Ltd (NYSE:BABA)’s employees, there is still good news for them, which is that a year-end payment, known as “The 13th-Month Bonus”, which is usually equivalent to a month’s salary, would be distributed this month.
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