Canadian Equity Compensation 101

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As US multinational companies (and their related cross-border activities) continue to grow and expand, US lawyers and human resources professionals may be asked to consider issues related to equity compensation for their Canadian-based employees more and more. US employers operating in Canada must consider a different set of rules for share-based compensation, including different taxation laws as well as the implications of the common law (i.e., judge created law). Such differences can create a number of plan design challenges, including:

  • Performance Vesting - how does one determine if the goals were achieved? on termination of employment, do you pro-rate the period or delay payment and pro-rate the shares
  • Clawbacks - what types of compensation are affected and how far back can the clawback reach? who is subject to a clawback?
  • Change in Control – what is the effect of a change in control on the awards? what are the special challenges in valuing performance vesting?

For answers to these and other questions, please join us for a workshop, “Equity Compensation Boot Camp: Canada and U.S.” being held in Osler’s New York office on March 20 from 12:00 to 2:30 p.m. For a copy of the invitation and the topics to be discussed click here or please contact Vaughna MacKenzie at seminars@osler.com.

 

Published In: Finance & Banking Updates, International Trade Updates, Labor & Employment Updates, Securities Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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