Alibaba - Why is there a new chairman?

There is always news about China's largest e-commerce company these days.

Meet Joseph Tsai, who will be the next Chairman of Alibaba.

A few points to take note of about Joseph Tsai and why the change of guard.

Many would have thought Jack Ma was the sole founder of the company. But Joseph Tsai is one of the founding fathers of the company.

He quit his USD 700,000-a-year job at Investor AB and offered to join Ma as a member of the founding team for almost nothing.

Tsai served as chief operating officer, chief financial officer, and founding board member.

He built Alibaba's financial and legal structure due to his experiences in venture capital and law.

Although just at 1.4% total shareholding, Joseph Tsai is the 2nd largest individual shareholder of the company behind Jack Ma.

His skin in the game as the new Executive Chairman is well justified, as any positive uptick in Baba's stock price would benefit him greatly.

Whether it is down to experience and skin in the game, Joseph Tsai is one of the very few individuals to lead Alibaba in such trying times.

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