Baidu Responds to CEO Flight Expenses: “Standard and Reasonable,” Common Practice at Major Companies

Baidu, the Chinese tech giant, recently unveiled its Q1 2025 earnings, sparking both interest and a touch of scrutiny. The report showed a total revenue of RMB 32.5 billion, representing a modest 3% year-over-year increase. Core revenue, a key metric for Baidu’s operations, reached RMB 25.5 billion, reflecting a stronger 7% growth. The company also reported a net profit attributable to Baidu of RMB 7.7 billion, a robust 42% surge compared to the previous year.

However, it was a supplementary detail within the report that grabbed headlines: Baidu’s disclosure of payments related to a private plane used by its Chairman and CEO, Robin Li.

Responding to the online chatter, a Baidu public relations representative, Guo Xiaoqian, stated that the information had been previously disclosed in the company’s annual report for April. “As a publicly listed company, Baidu is obligated to accurately and promptly disclose all relevant transactions,” explained Guo. “The payment for business-related flight expenses falls under this category, and these expenses are both approved and in line with standard practices. Paying for an executive’s air travel for business purposes is common among major corporations both domestically and internationally.”

Baidu’s prior statements clarify that, between 2022 and 2024, the board of directors approved Baidu’s payment of expenses and costs for Li’s use of a plane beneficially owned by his family for company-related business purposes.

Baidu further noted that the hourly rate charged for the use of the aircraft was determined based on a market analysis of fees for comparable aircraft rentals.

Management also disclosed that the value of services fees between 2022 and 2024 are “not critical”.

It’s worth noting that the specific financial figures related to the airplane usage were not itemized within the earnings report.