The chairman and co-founder of Alibaba, Jack Ma will step down from his position as executive chairman of the company.
It’s been 19 Years since Ma started the company and has been its chairman till date. He will continue as chairman for another year, before stepping down.
Daniel Zhang has been selected to be the next executive chairman, once Jack Ma quits from his post.
Mr. Ma will continue to remain on the board until 2020. He feels that corporate governance should not be built on individuals but on the organizational strength.
Development of e-commerce in the country had helped in the growth of technology companies like Alibaba, making it a strong power to contend against, in its sector. With the surge in internet usage, the company’s market capitalization has risen to high levels that competed with those of Facebook.
Alibaba’s business has further expanded into online video and movies. It has various brick-and-mortar stores. The company is seeing much growth in markets like India and Southeast Asia.
But what worries the country and the industry most, is the slow-down of the Chinese economy. The trade war is hurting the economy. Further Alibaba faces competition from other companies, such as Pinduoduo and JD.com.
Mr. Ma says “I want to return to education”. He had initially been an English teacher before starting the business. He feels “younger people with talent should take up leadership roles”. The duration of one year will help the “transition to be smooth”, he feels.
The shares of Alibaba fell on the announcement of the news in the United States, where the company is listed. Mr. Ma holds about 6 percent stake in his company’s shares. He will remain in the board of his company till the 2020 shareholder meeting.
Zhang, the next CEO has been with the company for about 11 Years. He is considered as a person of “superb talent”.