Atlassian is phasing out its long-standing equity refresh grants and shifting to a blended structure of cash and shares, aiming to shield staff from recent stock volatility linked to artificial intelligence disruption.
Investors have been uneasy that tools from Anthropic and OpenAI could erode demand for Atlassian’s core collaboration and software products.
Company representatives argue the revised policy aligns Atlassian with other major technology employers, many of which have quietly scaled back ongoing stock grants without direct substitutes.
New-hire equity awards remain available for eligible roles, preserving stock incentives for incoming talent rather than across-the-board renewals.
Under the new framework, annual “refresh” awards are now tied closely to performance ratings and delivered as different combinations of cash and equity.
Staff who exceed expectations receive a package equal in value to their previous grant, split evenly between shares and cash, while those who meet expectations get the same value delivered entirely in cash.
Employees who fall short of key role expectations lose access to refresh grants altogether, adding sharper differentiation to bonus outcomes.
Atlassian also notes that certain positions will permanently move to all-cash awards, reflecting how comparable roles are typically compensated across the broader market.
Beyond incentives, Atlassian is adjusting its pay structure in Australia by collapsing regional bands and moving all local staff into the highest pay zone.
That change lifts compensation for employees working remotely outside New South Wales, Victoria and the ACT, who previously sat in lower pay brackets than colleagues in those states.
The company says it has several hundred people based in these other regions, meaning the shift delivers pay rises to a meaningful slice of its Australian workforce.
Executives frame the move as part of a broader “rebalancing” of equity and cash designed to support long-term growth while still investing heavily in employees.
These compensation changes arrive just months after Atlassian cut about 1600 roles, around 10% of its global staff, arguing that AI adoption required a very different skills mix.
The company’s share price had fallen more than 70% over the prior year at the time of those layoffs, although it has since recovered some ground as results improve.
For the quarter to March 31, Atlassian reported adjusted profit of $US456.5m, up from $US261.5m a year earlier.
It delivered $US1.75 in adjusted earnings per diluted share, ahead of analyst expectations.
Management points to stronger, longer-term customer commitments and a push toward “durable profitability” after years of losses.
