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.