Canada | Global Equity Organization

IN-PERSON CHAPTER EVENT

18 September 2024, 4 - 5pm EDT

TORONTO CHAPTER MEETING

Toronto

All plan types

Canada

GEO TORONTO CHAPTER SUMMER/FALL 2024 MEETING

Meet and hear from local equity compensation professionals at the next GEO Toronto Chapter meeting.

SESSION ONE: THE BEST OF NASHVILLE
From Nashville to Toronto: the GEO Toronto Chapter is excited to share the latest updates from the GEO Annual Conference. Amelie Desrochers (Deloitte) will focus on sharing the knowledge and key themes from the event, on share plan design, strategy and engagement, in addition to the latest technical updates.

SESSION TWO: WHO, WHAT, WHERE, AND WHY - DELIVERING TAX COMMUNICATIONS IN A MEANINGFUL WAY
Knowledge is power especially when it comes all things related to tax. So why not empower your participants with the tools and resources they need to help them understand the potential tax consequences of what they own. During this thought-provoking session we will cover the five Ws - who, what, when, where and why - of tax communications. It's not just about giving the information, but more importantly delivering it in a meaningful way. You'll hear from our experienced guest speaker that has done just that and as a result has a powerful story to share.

KEY LEARNING POINTS

Learn how to empower yourself with the necessary tools and resources for informed decision-making.
Delivering tax information in a meaningful and impactful way.
Hear from an experienced guest speaker who has successfully navigated tax communication challenges

SESSION THREE: BURSTING THE MYTH OF MOVING TO AN OMNIBUS PLAN
This session will be conducted by industry experts who have experience in implementing and managing omnibus plans. During the session, participants will gain a comprehensive understanding of the advantages and challenges associated with moving to an omnibus plan. The experts will present real-life examples, share best practices, and provide practical tips to help organizations make informed decisions about adopting an omnibus plan.

KEY LEARNING POINTS

Common misconceptions surrounding the transition to an omnibus plan in an organization.
Advantages and challenges of adopting an omnibus plan, with insights from industry experts.
Best practices to help your organization make informed decisions when considering an omnibus plan.

COST:
There is no cost for this chapter meeting, but registration is required. Both GEO members and non-members are welcome.

ARTICLE

11 July 2024

Canada: Changes to taxation of stock options and capital gains – Effective immediately

Baker McKenzie

Finance, tax and accounting

Stock options

Canada

Starting from June 25, 2024, changes from Budget 2024 will alter the capital gains inclusion rate and the employee stock option deduction rate. The stock option deduction and capital gains tax exemption will decrease from 1/2 to 1/3 of the taxable amount if an individual's annual combined limit of CAD 250,000 is exceeded. Taxpayers can decide how to allocate the preferential tax treatment between stock option income and capital gains beyond the combined limit.

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2.5 Mastering Share Sourcing and Sales: Strategies for Effective Employee Share Plans

Read more about 2.5 Mastering Share Sourcing and Sales: Strategies for Effective Employee Share Plans

Setting up an employee share plan involves crucial decisions about sourcing shares and managing sales effectively. Join Ghal and Tom from EQ's Corporate Dealing team, Ben McCarthy from Linklaters and Rob Lyons from M&S as they share their extensive experience in this area. They’ll cover current trends in sourcing shares, looking at new issue or market purchase, along with key considerations for an issuer and their finance team. Discover strategies for hedging, managing large share sales and using the Employee Benefit Trust to your advantage. There will be focus on the recent changes to dilution limits in the Investment Association’s Principles of Remuneration.

KEY LEARNINGS:

Learn strategies for sourcing shares, planning in advance for your share plan vesting whilst managing headroom and dilution limits.
Understand how an issuer can use various approaches across their share plan grants to keep their finance team and employees happy.
Discover effective liquidity management techniques to ensure an orderly market at vesting.

Speaker/Author

Ghal Supple, Equiniti
Tom McCulloch, Equiniti
Ben McCarthy, Linklaters
Robert Lyons, Marks and Spencer

Event date

Wednesday, 13 Nov 2024, 08:10 - 09:00

Topic

Operational effectiveness

Plan type

Cash deferral

Choice plans

Discount shares

Employee stock purchase plans (ESPP)

Stock appreciation rights (SAR)

Country

UK and Channel Islands

USA

Breakout series

BREAKOUT II

Location

Affiliation Hub 2

Field of Study

Specialized Knowledge

Level

ARTICLE

4 July 2024

BANXA LAUNCHES EMPLOYEE SHARE PURCHASE PLAN AND COMPLETES SALE OF NON-CORE ASSET

Financial Times

Case Study

Employee stock purchase plans (ESPP)

Canada

Banxa Holdings Inc. has launched an Employee Share Purchase Plan (ESPP), allowing employees in Australia, the US, Europe, and the UK to purchase shares and benefit from the company's growth, with the plan featuring a 40% employer match and a one-year lock-up period. CEO Holger Arians emphasized that the ESPP aims to foster an ownership mindset and align employees with Banxa’s long-term success. Additionally, Banxa completed the sale of the non-core asset Bitcoin.co.uk for EUR $266,500, contributing to the company's strategic financial management.

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ARTICLE

27 June 2024

CANADA: CHANGES TO TAXATION OF STOCK OPTIONS AND CAPITAL GAINS – EFFECTIVE IMMEDIATELY

Baker McKenzie

Legal and regulatory

Stock options

Canada

The proposed changes in Budget 2024 regarding stock options in Canada will come into effect on June 25, 2024. These changes reduce the stock option deduction and capital gains tax exemption from 1/2 to 1/3 of the taxable amount, if the individual's annual limit of CAD 250,000 is exceeded. Employers face uncertainty in managing tax withholding on stock option income, as they may not know if the employee has exceeded the limit or how exemptions are allocated. Additional legislative clarifications are expected by July 2024, prompting employers to currently consider withholding taxes based on the reduced exemption rate of 1/3.

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ARTICLE

22 April 2024

OPINION: THE MOMENT IS RIPE FOR EXPANDING EMPLOYEE OWNERSHIP IN CANADA

Vancouver Sun

Design and strategy

All plan types

Canada

This article advocates for greater democratization of workplaces, highlighting the absence of democratic rights for workers despite their significant time spent in these environments. It discusses the potential benefits of enabling employees to have more control and ownership in their workplaces, citing examples of successful employee-owned firms in Canada and abroad. The article also outlines various public policy options, including the creation of Employee Ownership Trusts, to facilitate the expansion of democratic employee ownership in Canada and address barriers such as limited access to capital.

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VIRTUAL CHAPTER EVENT

25 April 2024, 12 - 1pm EDT

TORONTO VIRTUAL CHAPTER MEETING

Workplace solutions

Canada

SESSION ONE: HOW BLACKOUT PERIODS IMPACT EQUITY AWARDS
What are the different ways issuers address blackout periods in their equity incentive awards, including how blackout periods impact the timing for granting or settlement of awards and the calculation of award values? What have regulators said? What if a special blackout is in place when annual awards are scheduled to be made? The event will focus on gathering market perspectives and sharing practices from various organizations

SESSION TWO: LTIP TREATMENT FOR RETIRESS: EVOLUTION, CHALLENGES AND BEST PRACTICES
The purpose of this session is to address the complexities and considerations surrounding the treatment of retirees in the context of LTIPs within the share plan world. The session will explore how the treatment of retirees has evolved over the years, the challenges it presents, and best practices for dealing with retirees and good leavers.

COST:
There is no cost for this chapter meeting, but registration is required. Both GEO members and non-members are welcome.

IN-PERSON CHAPTER EVENT

28 November 2023, 4:30 - 6:30pm EST

GEO TORONTO CHAPTER MEETING

Ali Abid, CCGG
Assad Mallick, TELUS Health
Amanda Voegeli, Southlea Group

Canada

EXPLORING BEST PRACTICES IN SHARE OWNERSHIP GUIDELINES

The expert panel will dive into the world of share ownership guidelines, shedding light on their importance in aligning management interests with shareholders.

Attend to discover insights from the 2022 review conducted by the Canadian Coalition for Good Governance, an essential report that analyzes proxy circular disclosures from 237 Canadian companies.

KEY LEARNING POINTS:

Discover the essential components of effective share ownership guidelines.
Gain insights into methods for accurately valuing equity securities.
Understand the best practices for treating unvested awards and their impact on share ownership policies.

NEWS

2 August 2023

SEC APPROVES NYSE AND NASDAQ CLAWBACK LISTING STANDARDS - ASSESSING THE IMPLICATIONS FOR CANADIAN FOREIGN PRIVATE ISSUERS

Michael H. Taylor , Cory Kent and Ravipal Bains

Finance, tax and accounting

Executive plans

Canada

USA

The article discusses the approval by the U.S. Securities and Exchange Commission (SEC) of clawback listing standards for the New York Stock Exchange (NYSE) and NASDAQ. These standards, aligned with the SEC Clawback Rules, mandate that listed companies develop and implement clawback policies for recovering incentive-based compensation from executive officers in the event of an accounting restatement. The article provides an overview of the key elements of the SEC Clawback Rules, including their application to all issuers, the triggers for recovery, the types of compensation covered, and disclosure requirements. The article also offers guidance for Canadian companies subject to these rules, highlighting potential implications and considerations for compliance with the new standards. The deadline for companies listed on NYSE and NASDAQ to adopt compliant clawback policies is outlined, along with the consequences of non-compliance, and the need for Canadian companies to adjust their compensation plans and policies accordingly. Additionally, the article touches on the perspectives of proxy advisory firms Glass Lewis and ISS, and the evolving market practice regarding clawbacks in Canada.

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ARTICLE

18 July 2023

CORNISH METALS CORPORATE UPDATE AND GRANTS INCENTIVE STOCK OPTIONS

SOURCE: Yahoo Finance

Canada

The article covers Cornish Metals Inc.'s recent corporate update, highlighting the grant of 11 million incentive stock options to its executive management and senior staff as part of a Long Term Incentive Plan (LTIP). The options are priced at £0.18 per share and will vest over three years, expiring on July 17, 2028. This grant brings the total options issued to 3.02% of the company's Issued Capital. Additionally, the article briefly mentions the appointment of sub-committees of the Board following a recent Annual General Meeting.

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