Xpeng has proposed granting more than 28.5 million shares to its chairman and CEO He Xiaopeng, subject to performance-based conditions linked to the company’s stock price, the Chinese electric vehicle maker announced on Friday.
The grant, valued at approximately HK$2.55 billion ($328 million) based on Xpeng’s closing price of HK$89.55 per share in Hong Kong, would be awarded at no purchase cost. However, Mr. He can only unlock the shares if the company’s stock reaches predetermined price levels within 10 years.
Under the plan, one-third of the shares—9,502,262—will vest if Xpeng’s Hong Kong-listed stock maintains an average price of HK$250 for 30 consecutive trading days. Another third will be unlocked if the price reaches HK$500, with the final portion available when the price reaches HK$750. If these targets are not met by March 18, 2035, the grant will expire.
“The proposed grant is intended to provide incentives for Mr. He’s dedication and leadership in the development of the group’s business by further aligning Xpeng’s interests with those of Mr. He,” the company stated. It added that strong leadership is crucial for the company’s long-term growth and strategic development.
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Mr. He, who has led Xpeng since August 2017, currently holds 4.4 million Class A shares, equivalent to 0.3% of all Class A shares and 0.1% of total voting rights, according to Xpeng’s 2023 annual report. He also controls all 348.7 million Class B shares, representing an 18.48% equity stake and 69.5% of the voting power.
Xpeng shareholders must approve the proposed 2025 share incentive plan before it takes effect. Xpeng’s Hong Kong-listed shares have surged about 100% year-to-date, reflecting investor optimism about the company’s prospects.