Equity Incentive of Core Employees and Enterprise Performance: Taking Alibaba as an Example

Zijin Li

doi:10.62051/ijgem.v10n1.09

Authors

Zijin Li

DOI:

https://doi.org/10.62051/ijgem.v10n1.09

Keywords:

Core Employees, Equity Incentive, Enterprise Performance, Alibaba, Incentive Mechanism

Abstract

Against the backdrop of rapid digital economy development, core employees are key to enterprises’ competitive advantage. Equity incentive, a critical mechanism linking core employees to long-term corporate growth, has drawn wide attention for its relationship with enterprise performance. This paper uses literature research, case analysis, and financial indicators to study Alibaba, sorting out its core employee equity incentive development and system design, analyzing the internal mechanism of equity incentive on performance, and verifying effects via financial and non-financial data. Findings show Alibaba’s "hierarchical grant, dynamic adjustment, long-term lock-in" equity incentive system significantly boosts performance by cutting agency costs, stimulating innovation, and stabilizing talent. However, issues like unbalanced incentive intensity and rigid assessment mechanisms exist. Conclusions provide theoretical and practical references for Internet enterprises to optimize equity incentive schemes and achieve sustainable performance growth.

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