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News and Discussions on Payroll, HR & Employment Law

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Unexpected risks of stock option plans

Stock options and stock grants have become normal and expected elements of executive compensation in Canada. Stock options are generally granted to executive employees as a means of creating a common purpose or goal between senior employees and the company. The valuation of these options, and the employee’s entitlement to exercise them, has been an issue in many wrongful dismissal actions.

 

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Loss of benefits under employer-provided pension plans

Much has been written about our aging workforce and the implication for employers of the coming tide of retirements. The premiers and Prime Minister recently met to attempt to deal with those workers who do not have company pension plans by enhancing the benefits available under the Canada Pension plan, unfortunately without success. Clearly, retirement planning and the funding for that retirement are hot issues.

 

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