Chinese ecommerce powerhouse Alibaba Group Holding is revamping staff incentives to combine more exercisable stock options with cash in an effort to boost employee morale amid intense competition in a challenging market environment.

The new incentive scheme will come into effect from April 1, 2024, the start of the new financial year for the Hangzhou-based firm. The changes are aimed at improving the “certainty and liquidity” of employee income, according to people familiar with the matter, who declined to be identified.