NIO proposes to grant Li Bin share-based incentives contingent upon achieving specific performance targets, with full vesting only if the company's market capitalization exceeds $120 billion and net profit surpasses $6 billion.

On March 10, NIO (09866) announced that the Board of Directors has approved the 2026 Share Incentive Plan, under which approximately 248 million restricted shares will be granted to the company’s founder, Chairman, and CEO, Li Bin. The restricted shares are divided into ten equal tranches, with vesting conditions linked to specific performance targets related to the company’s market value and net profit. The plan took effect on March 6, 2026, and is valid for twelve years.

It is noteworthy that the shares will only be vested to Li Bin after certain performance targets are achieved. These targets are directly related to the company’s market value and net profit. Specifically, when NIO’s US stock market capitalization exceeds $30 billion, $50 billion, $80 billion, $100 billion, and $120 billion, one-tenth of the shares will vest to Li Bin at each milestone. When the company’s net profit exceeds $1.5 billion, $2.5 billion, $4 billion, $5 billion, and $6 billion, respectively, one-tenth of the shares will vest at each level. When the market cap surpasses $120 billion and net profit exceeds $6 billion simultaneously, all remaining incentive shares will vest.

Financial reports show that NIO achieved an operating profit of 1.25 billion yuan in Q4, with cash reserves of 45.9 billion yuan, a significant quarter-over-quarter increase of nearly 10 billion yuan. In 2025, the company delivered a total of 326,028 new vehicles, a 46.9% year-over-year increase; total revenue reached 87.49 billion yuan, up 33.1%; and gross profit was 11.92 billion yuan, an 83.5% increase, all hitting record highs. In Q1 2026, delivery guidance is between 80,000 and 83,000 units, representing a 90.1% to 97.2% year-over-year growth. Revenue guidance is between 24.48 billion and 25.18 billion yuan, up 103.4% to 109.2% year-over-year.

Analysts note that the unlocking conditions tied to market value and net profit are designed to set clear and challenging long-term goals, aligning shareholder returns with business growth and operational results. This deepens the incentive linkage between the CEO and the company’s strategic objectives, motivating leadership to drive sustainable profitability and value growth in a competitive market, thereby maximizing long-term benefits for all shareholders.