Li Auto CEO Li Xiang responds to the "year-end bonus controversy": rewards and punishments are clear and the organization is efficient

On February 6th, car blogger @大D有动 disclosed on social media that according to sources, Li Auto’s 2023 year-end bonus will be very generous. This news attracted widespread attention, and Li Xiang, CEO of Li Auto, also personally responded to the matter.

According to the screenshot shared by the blogger, in a voting on year-end awards conducted by the Maimai Ideal Community, 97 people said that their year-end awards lasted for more than 5 months, and more People said they didn't know the specific situation yet. This data seems to imply that Li Auto is generous in terms of year-end bonuses.

Li Xiang said in an interview that the company adheres to the principle of clear rewards and punishments, and believes that unclear rewards and punishments are the main cause of organizational inefficiency. He emphasized that Li Auto is not only committed to learning advanced processes, but also focuses on learning the distribution of benefits. According to the company's regulations, if the company exceeds the target in 2023, additional bonuses will be paid to employees; on the contrary, if the target is not achieved in 2022, the bonus will be reduced. This clear reward and punishment system is designed to motivate employees to make greater contributions to the company's development.

In addition to the challenges mentioned above, Li Xiang also pointed out other factors that led to the adjustment of year-end bonuses. He said that the global automotive industry as a whole will face uncertainty and pressure in 2022, including the continued impact of the epidemic, rising raw material prices, energy crisis, etc. These factors have had a significant impact on Li Auto's operations and sales, and the company has had to take some adjustment measures to deal with these challenges. Li Xiang further explained that supply chain problems are one of the important reasons for the decline in year-end bonuses. Global supply chain shortages and delays have affected Li Auto's production and delivery capabilities, leading to lower sales. In addition, the company will switch and upgrade its product lines in 2022, which will also bring instability and downward trends in sales. Faced with these challenges, Li Auto decided to adjust the year-end bonus accordingly. Li Xiang said that the company has made reasonable adjustments to maintain the company's sustainable development while ensuring employee welfare. He emphasized that Li Auto attaches great importance to the contributions and values ​​of its employees and will continue to work hard to create a better working environment for employees. Li Xiang said that Li Auto will continue to uphold the three indispensable principles of growth, achievement and reward. principles, and stimulate employees' enthusiasm and creativity through a clear reward and punishment system and reasonable distribution of benefits to promote the company's sustainable development.

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