• No cost to company, except for set up and administration.
  • Allows employees to purchase shares progressively through regular savings.
  • Can be applied to as few or as many employee groups as desired.
  • Non-dilutive as on-market purchases or new issues may be used and the full market price of a Share is paid at the time of acquisition.
  • Can be used internationally.
  • Can avoid minimum order value limits imposed by brokers.
  • Usually free brokerage for employees.


  • Minimal advantage over employees buying shares on-market.
  • Not tax effective for employees.
  • Employees bear full market risks and can lose money if the share price falls.
  • Requires compliance with “contribution plan” Corporations Act requirements (not onerous for listed companies).
  • Buying company shares can lead to less flexibility for employees in regard to purchasing and selling due to insider trading laws and company share trading policies.
  • Must accumulate at least $500 of shares (minimum marketable parcel) to be able to sell them on the ASX.

About Basic Plans

Basic Plans can involve either new issues or on-market purchases (usually via a trustee) of shares at their market value. In either case employees are not charged brokerage because a broker is not involved (new issues) or the company meets the brokerage costs. Also, minimum broker purchase obligations generally do not apply because either a broker is not used or the purchases are aggregated by a trustee. While they do offer the opportunity for improving engagement and alignment there is a risk that they may backfire if the share price falls leading to disgruntled employees. This risk aspect is partly addressed in the Global Employees Plan.