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… Continue Reading
Recent U.S. rules requiring shareholder votes on executive compensation are being watched carefully by Canadian issuers. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) calls for mandatory say-on-pay votes at all annual meetings of U.S. issuers and certain foreign issuers that are subject to the Securities and Exchange Commission’s proxy rules. Shareholders… Continue Reading
As an incentive arrangement, stock units are useful and easy to explain: cash payments are made at a future date, indexed to the value of the underlying employer stock. However, there are several traps for the unwary associated with stock units that require careful attention to the valuation date prior to payout.
As described in a recent Osler Update, on July 21, 2010, sweeping financial reform was signed into U.S. law by President Obama. The new law affects more than just Wall Street financial institutions and contains new requirements on corporate governance, federal securities law and executive compensation provisions. In the Dodd-Frank Wall Street Reform and Consumer… Continue Reading
One topic that has gripped North American companies since the recession began is the scrutiny of executive compensation. In response to this increased attention on executive compensation arrangements, employers have turned to self-reflection on difficult questions. Are incentive programs causing executives to take undue risks when making business-related decisions? How will an organization’s decisions regarding… Continue Reading
The Canadian government recently tabled its budget for 2010, which proposes significant changes to the way in which both employees and employers are taxed in Canada on stock options, including: elimination of the deferral for public company stock options; restrictions on the deduction for the cash out of stock options; and special relief for tax… Continue Reading
Many compensation and pension actions require the approval of a company’s board of directors, or a committee of the board, and for good reason. Employers should not skimp on the finalization of corporate approval via signed and dated board or committee resolutions. U.S. Case in Point: A federal judge in New York recently denied enhanced… Continue Reading
Executive compensation continues to make headlines in the U.S. To cut through the chaos of a seemingly endless stream of multiple legislative proposals, “Say on Pay” initiatives, and regulatory pronouncements on the topic, here is a brief summary of the two major developments released in the last week alone: Following instructions from the G-20 summit,… Continue Reading