Oriental Education’s New President Reveals Live Broadcasting Team Salary

During a speech at the China Entrepreneurs Forum in Tianjin on August 3, Michael Yu, President of New Oriental Education, expressed his views on the company’s live e-commerce platform, Oriental Selection.

New Oriental Education has spent nearly 20 billion yuan ($2.96 billion) since last year to repay tuition fees and compensate its employees, although its abundant cash reserves have enabled it to emerge largely unscathed. When Oriental Selection live streamers previously worked as teachers, their annual income exceeded 1 million, but now their annual income is around 200,000 yuan to 300,000 yuan. Since last year, the salary of the main members of New Oriental has dropped by at least 60% to 70%, but none of them has left their position.

Yu said, “I have never proposed requirements on the annual income and annual profit of New Oriental, nor Oriental Selection. However, the products sold must be highly qualified, in order to render real service to ordinary people. As to when the gross volume of goods of Oriental Selection can be increased in the future, I don’t care.

In response to the question whether some problems of traditional e-commerce platforms will appear in Oriental Selection, Yu mentioned three aspects. First, New Oriental is a listed company, and every penny of a listed company must be registered. Second, an audience’s trust in the live-streaming platform has driven the share price higher, which is now stable at around HK$20 ($2.55). Third, Oriental Selection is based on the company, not on Yu himself. No matter how famous the live streamers are, they are a team.

SEE ALSO: New Oriental Education founder Michael Yu may open an e-commerce school in the future

In late July, a financial report released by New Oriental showed its net revenue in the fourth quarter of fiscal 2022 was $524 million, down 56.8% year-on-year. For the full fiscal year 2022, its net income was $3.105 billion and its operating loss was $983 million. Yu said at the time that he believed that with the company’s accumulated brand awareness and educational resources, new ventures would start generating significant revenue in the next fiscal year.

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