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VIDEO · 19 JULY 2023

Equity Compensation Plans: Stock Options, RSUs, And Allocation (Video)

In my practice, I frequently provide advice on a specific area of law: stock option plans, or as I prefer to refer to them, equity compensation plans.

CanadaCorporate/Commercial Law

In my practice, I frequently provide advice on a specific area of law: stock option plans, or as I prefer to refer to them, equity compensation plans.

Since this is just an introduction, I will focus on two common topics that founders frequently inquire about when considering an equity compensation plan:

  1. What types of equity compensation can be awarded?
  2. Where do the shares come from?

Types of equity compensation

In this blog, I will not be able to cover all the different types of equity compensation. Instead, I will discuss two of the most prevalent options: stock options and restricted share units (RSUs).

Stock options are often the first type of equity compensation that founders inquire about. They are a suitable choice for companies ranging from early-stage start-ups to large public corporations.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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