Regulatory Alerts2018-10-30
Instruction on Conferring Share Options for Public Shareholding Company Employees
The Jordan Securities Commission issued this instruction to regulate Employee Share Options (ESO) for public shareholding companies, mandating general assembly approval and contracts that fix strike prices at or above the market value on issuance. The framework caps annual grants at two percent and total allocations at six percent of paid-up capital, while excluding board members and major shareholders and prohibiting share buybacks to settle ESO obligations. Companies must disclose recipient details within ten working days, exercise options between April and May following annual report publication, and secure regulatory clearance before issuing registered shares to employees.
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