• Provides highly leveraged reward in high share price growth scenarios (but SARs are superior).
  • Plans designed for Sophisticated Participants can deliver superior outcomes.
  • Can be constructed to produce nil taxable value for companies expecting very high share price growth.
  • Unlisted start-ups can access tax concessions (see start-up plan).


  • The need to fund the exercise price is often a hurdle for participants.
  • High dilution for low relative benefit.
  • High risk of producing no benefit for participants.
  • Nil taxable value options unsuitable for most company circumstances.
  • Generally a Share Appreciation Rights Plan will achieve the same objectives with less cost and dilution.

About Share Option Plans

These have long been the preferred plan type for smaller companies with significant potential for sharp increases in their share prices such as those involved with technology, resource exploration, research or development of new products or services.

A taxation concession is available to unlisted companies that meet the conditions required to qualify as a start-up.