Corporations Act

Unexpected risks of stock option plans

October 27, 2011 Earl Altman Payroll, Pensions and Benefits, Wages and Compensation

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.

Corporations Act, employee shareholder, executive compensation, financial information, lawful termination, lump sum severance, oppression action, period of notice, securities act, severance, stock grants, stock option plan, stock options, termination, termination notice, vesting of stock options