Jack Ma will leave his job next year

Jack Ma, a billion-dollar pioneer of the Chinese Internet industry, will step down as Alibaba's executive chairman next year to make room for the next generation of company leaders.

"No company can rely solely on its founders," Ma said in a letter to his clients, employees and shareholders on Monday. "Because of the physical limitations of his abilities and his energy, no one can assume the responsibilities of President and CEO forever."

A former English teacher, Ma started Ali Baba (BABA) there are nearly two decades in his apartment and built in a $ 420 billion company. The e-commerce company said CEO Daniel Zhang would succeed Mr. Ma in 12 months.

With a net worth of about 40 billion, Ma is one of the richest people in China. He maintains high visibility, speaking at conferences around the world and with world leaders.

Ma, who will remain on the company's board until 2020, said he has spent the last 10 years preparing for this succession plan, identifying and developing good talent within Alibaba .

"Teachers always want their students to go beyond them, so the responsible thing … for me and for the company is to let young people and the most talented take on leadership roles," he said.

Mr. Zhang, 46, joined Alibaba in 2007 and held various management positions before taking over the company in 2015.

"Daniel is very discreet, he is silent, he is sweet, he is more Clark Kent, and Jack is the Superman," said Duncan Clark, the author of "Alibaba: The House That Jack Ma Built".

Ma abandoned the role of CEO in 2013 and in recent years has found time to work on other projects, including philanthropy and performance in a kung fu movie.

He said Monday, at the age of 54, that he wished to resume his studies, adding that he was still young and that he had "many dreams to pursue."

Even after being removed from Alibaba's management and board of directors, it should continue shaping the future of the company through its lifelong membership in the Alibaba partnership, a group 36 persons who can appoint the majority of directors to the board.

"Regardless of his title, he will always have that reputation as a founder within the company and the market," Clark said.

The announcement of his departure comes at an uncertain time for Chinese technology companies. Stocks of Alibaba and other large companies have been affected by concerns about the health of the Chinese economy and Beijing's increased surveillance of the sector.

In the turmoil, the 12-month period before Mr. Zhang's transfer to Mr. Zhang will allow a smooth transition to Alibaba. Karen Chan, an equity analyst at Jefferies, wrote Monday in a research note.

Alibaba started in 1999 as an online market to connect Chinese companies to each other. Since then, it has grown significantly to become China 's largest technology company, helping merchants sell everything from luxury goods to fresh groceries, to growing numbers of people. online buyers of the country.

To manage the high volume of transactions, Ma set up Alipay, an online payment platform that allowed customers to pay for goods using a digital wallet. Alipay, which is now part of Alibaba's affiliate, Ant Financial, is China's most popular digital payment service.

Alibaba went public in 2014, raising $ 25 billion on Wall Street in the largest IPO in the world.

Society has become an aggressive technology investor who is investing money in video streaming, online food delivery, unanchored bike sharing and start-ups in China and elsewhere.

CNNMoney (Hong Kong) First published on September 9, 2018: 9:25 pm