NIO-SW (09866) has announced that its board of directors approved a 2026 share incentive plan on March 10. Under this plan, the company will grant approximately 248 million restricted shares to its founder, chairman, and CEO, William Li. These restricted shares will be divided into ten equal batches, with vesting conditions tied to specific performance targets related to the company's market capitalization and net profit.

The plan takes effect on March 6, 2026, and remains valid for twelve years. The shares will vest in batches only upon the achievement of certain performance milestones. These milestones are directly linked to NIO's market value and net profit. Specifically, one-tenth of the shares will vest each time NIO's U.S. market capitalization surpasses thresholds of $30 billion, $50 billion, $80 billion, $100 billion, and $120 billion. Similarly, another one-tenth will vest each time the company's net profit exceeds $1.5 billion, $2.5 billion, $4 billion, $5 billion, and $6 billion. Full vesting of all incentive shares will occur when NIO's market capitalization exceeds $120 billion and its net profit surpasses $6 billion simultaneously.

According to financial reports, NIO reported an operating profit of RMB 12.5 billion in the fourth quarter. The company's cash reserves reached RMB 45.9 billion, increasing by nearly RMB 10 billion quarter-over-quarter. For the full year 2025, NIO delivered 326,028 new vehicles, a 46.9% year-over-year increase. Annual revenue reached RMB 87.49 billion, up 33.1% year-over-year, while gross profit totaled RMB 11.92 billion, an 83.5% increase, setting new historical records. Delivery guidance for the first quarter of 2026 is between 80,000 and 83,000 vehicles, representing year-over-year growth of 90.1% to 97.2%. Revenue guidance is between RMB 24.48 billion and RMB 25.18 billion, indicating growth of 103.4% to 109.2%.

Analysts note that linking share vesting conditions to market capitalization and net profit aims to align shareholder returns with business growth and operational results. By setting clear and challenging long-term targets, the plan deeply ties the CEO's incentives to the company's strategic objectives, motivating leadership to drive sustainable profit improvement and value growth amid intense market competition, thereby maximizing long-term shareholder interests.