Key facts
- Li Auto granted 35 million stock options to three senior executives.
- The stock options are contingent on reaching a HK$1 trillion market capitalization.
- The market capitalization target must be achieved within the next decade.
- The options are intended to retain talent and boost investor confidence.
- The options vest over a four-year period.
- 25% of the options vest annually starting from the grant date.
Li Auto has awarded 35 million stock options to three of its senior executives, linking their compensation to the company's future market performance. The primary condition for these options is that Li Auto must achieve a market capitalization of HK$1 trillion within the next ten years. This strategic move is intended to serve as a powerful retention tool for essential talent and to bolster investor confidence, particularly as the Chinese electric vehicle manufacturer faces ongoing financial challenges.
The stock options will vest over a four-year period. Specifically, 25% of the options will become available to the executives each year, commencing from the date the options were granted. This phased vesting schedule encourages long-term commitment and aligns the executives' interests with the sustained growth and success of the company. The target market capitalization of HK$1 trillion represents a significant valuation milestone for Li Auto, reflecting ambitious growth expectations.