LI AUTO(US:LI) Hua Er Jie Jian Wen·2025-10-15 09:59Core Insights - The article highlights the significant compensation of Li Xiang, the chairman and CEO of Li Auto, who topped the Hong Kong-listed companies' director remuneration list with a total salary of approximately HKD 680 million (around RMB 639 million) for 2024 [2][3] - The article contrasts Li Xiang's earnings with those of other automotive executives, indicating that his compensation is notably higher than that of peers from companies like Leap Motor, BYD, Great Wall Motors, and Xpeng [2] - Li Auto's stock options and incentive plans are discussed, revealing that a substantial portion of Li Xiang's compensation is tied to stock options rather than direct cash earnings [3][4] Summary by Sections Compensation Overview - Li Xiang's total compensation for 2024 is reported as HKD 680 million, with a base salary of HKD 2.665 million and a significant stock payment of HKD 636 million due to meeting performance targets [2][3] - Other executives at Li Auto also received high salaries, with President Ma Donghui earning approximately RMB 40.27 million and CFO Li Tie earning around RMB 39.16 million [2] Stock Options and Incentive Plans - Li Xiang's compensation includes stock options from a specific incentive plan that grants him 10.86 million Class B ordinary shares, which are subject to performance conditions [4] - The first tranche of stock options was unlocked after achieving a delivery target of 500,000 vehicles within a year, with subsequent tranches tied to higher delivery targets [4] Market Performance and Challenges - Despite Li Auto's sales growth under Li Xiang's leadership, the company faces challenges in maintaining stock price stability and market share, particularly as competition increases [5] - The company's market share in the high-end segment has declined from 32% to 26%, indicating a need for new growth strategies, especially in the pure electric vehicle market [5]