Alibaba Chairman Jack Ma stepping down, successor may face challenges

Ma’s Legacy

The resignation plan announced by Ma last year was perceived as unusual, as it is rare for a founder of such a big and transformative tech firm to retire this early.

Under Ma’s leadership, Alibaba has grown to become Asia’s most valuable listed company, with a current market capitalization of $460 billion. It employs over 100,000 people, and has expanded into financial services, cloud computing, and artificial intelligence.

When Ma makes his farewell speech, investors would like to hear how he will be involved in management and whether he will continue to steer the company’s broad strategy. Ma has said that he will continue to mentor management.

After his resignation, Ma — China’s richest man with a net worth of $38.4 billion, according to Forbes — is set to spend more time on philanthropy and education. Yet he will remain a member of Alibaba’s partnership, a corporate governing group of 38 individuals that is separate from the board of directors.

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While the story of Ma’s success has become legend in China and gives him almost cult-like status there, he has also suffered some setbacks that Zhang would need to repair.

Ma struggled to expand Alibaba internationally, with the failed $1.2 billion acquisition of remittance provider MoneyGram marking a key disappointment.

Its Taobao marketplace has been accused by overseas luxury goods sellers of being a haven for counterfeit products. It is on a US list of “notorious markets” for goods that infringe on American intellectual property, a main source of friction in an escalating trade war between Beijing and Washington.

Ma also drew ire and sparked a nationwide debate about work culture in China earlier this year when he urged tech company employees to work nights and weekends.

While it remains to be seen how Alibaba will be steered by Zhang, Tuesday’s extravaganza promises to offer a spectacle and possibly a final opportunity for Ma to display showmanship.

At previous company events, he dressed up as Michael Jackson or a punk rocker and performed musical numbers.

“I expect a long, long ceremony with Jack showing up at the end — in dramatic style, of course,” says one Alibaba employee. “And plenty of people with their computers out working.”