On 30 June 2003, the Australian Securities and Investments Commission (ASIC) released guidelines on valuing share options which listed companies issue to directors and senior executives. Listed companies with financial year-end on 30 June 2003 will need to become familiar with ASIC’s guidelines relatively quickly, as they apply to directors’ reports for the 2003 financial year.
The practice of issuing share options to managers has become increasingly popular among listed companies in recent years. This enthusiasm however, has not been shared by the investing public. Reports of directors and senior executives of listed companies cashing in lucrative options packages have led to share options being depicted as an overgenerous perk given to those in charge of listed companies.
