Xero boss sells down stocks, announces ‘opt-out’ package for underperforming staff

Last month, Xero announced an Opt Out Program, targeting employees rated as either Below Expectation, or Moderate in two consecutive annual reviews.

In a Slack message sent to all of Xero's roughly 5,000 employees, Xero chief executive Sukhinder Singh Cassidy (pictured) stated that any employees deemed to be ‘Below expectation’ would have the option of either accepting a severance package or being placed on a 30-day performance improvement plan, as reported by Forbes. 

“As per the performance process, the Opt Out Program will be offered to 100 per cent of the Below Expectation cohort, as an alternative to the 30-day Performance Improvement Plan (PIP),” Cassidy said in this message.

“As AI changes how work gets done, we have the chance to redefine how small business finance works … To capture that opportunity, we need to keep raising the bar on the customer impact we deliver, and how we execute internally,” Cassidy also wrote.

“We’ve spent the last two-plus years talking about the need to build a high-performance culture alongside our purpose and passion, and putting in place the frameworks and reward systems to do so … and when I say we, I mean all of us,” she added.

Xero employees are rated either Exceptional, Strong, Good, Moderate and Below Expectation. Staff rated as Moderate can also accept the voluntary severance package. 

In a statement provided to Accountants Daily, a Xero spokesperson said, “Like any company that cares about doing great work, we have ongoing performance and development conversations with our people. That is a normal and continuous part of how we operate and how we support our teams.”

“We recognise strong performance, we support people who need it, and we treat everyone with care and respect,” the spokesperson added.

According to the interest notice, Cassidy continues to hold 171,381 restricted stock units and 1,038,308 unlisted options.

Xero Limited ASX shares closed at $71.21 on 14 July 2026, down from a peak of $193 in June last year; a fall prompted by artificial intelligence concerns and interest rate hikes.