Alibaba names new CEO as revenue jumps
Though Alibaba Group is succeeding in generating more revenue from mobile, it is nevertheless shuffling executives, elevating its chief operating officer Daniel Zhang to CEO in the face of a stock-based compensation program that has depressed profit.Zhang will take over on May 10, and current CEO Jonathan Lu will step down, remaining on Alibaba’s board of directors as vice chairman.The company made the announcement on Thursday, when it reported its first quarter earnings. Alibaba’s profit fell 49 percent year over year to about 2.9 billion yuan (US$476 million). Profit has been weighed down by continued stock awards given to employees since its IPO last year. Without the share-based compensation, Alibaba said its profit would have risen 14 percent.To read this article in full or to leave a comment, please click here