Alibaba Employees Are Getting Over $US200,000 Each In Stock On Average

Jack Ma Alibaba China Photos / Getty ImagesAlibaba founder Jack Ma

Alibaba, the Chinese e-commerce giant that will begin trading on the New York Stock Exchange tomorrow with the largest IPO in tech history, has been very good to its employees as of late.

Fortune’s Shawn Tully reports the company has shelled out a tremendous amount of restricted stock and restricted stock units (which can be exchanged for shares when they vest) to its employees over the last 15 months.

Alibaba is expected to price the IPO at $US66. Tully expects it to jump to $US82.50 once trading stars. If that happens, he estimates that Alibaba has granted its employees what amounts to $US250,000 in stock per person.

That’s a crazy-big amount of money, especially considering, as Tully notes, that the average Chinese worker earns about $US10,000 a year and executives make $US85,000.

These huge grants will give employees a major incentive to stay with the company while they wait for the units to fully vest.

(H/T to Christopher Mims)

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