ASX to make it easier for employee equity plan changes?

Key Takeaways

• Applications to the ASX to change options and rights grant terms, or seek a waiver regarding shareholder approval of such plans, get rejected.
• The ASX has indicated it may seek to simplify the process in FY27.

ASX Listing Rules do not generally permit boards to make changes to employee share rights or option grants.

ASX compliance guidance permits companies to seek a waiver to then seek shareholder approval to change an on-foot grant. We have reviewed changes in ASX’s stance on waivers under LR 6.23.3 in February of this year and in April 2024.

But success is limited. How limited? On June 26, ASX released its Listed Entity Supervision Report 2026, summarising the activities of the Supervision division in the 9-months ended 31 March 2026.

It can be seen that 7 submissions were rejected. Five related to the terms of the options, and 2 related to shareholder approval for changes to options.

So, do not count on ASX support for changes. But there is good news. The ASX indicated that in FY27 its supervision team will review its most commonly granted waivers and confirmations, with a view to developing proposals to reduce the need for them. An area of ongoing interest is potential simplification of its approach to employee incentive schemes.

Back to all articles